Thailand’s economic growth will fall to 3.5-4 per cent from the previous forecast of 4-4.5 per cent, as severe Floods may cut Thailand’s growth by 0.5%, according to a study by the University of the Thai Chamber of Commerce (UTCC).
The study by the private sector’s think-tank showed that the floods in the South since April and the current flooding in the Central region and the North of the country will dent the country’s gross domestic product by 0.5-0.7 percentage point, worth Bt58.49 billion.
The setback was attributed to the impact on the agriculture sector, worth an estimated Bt31.5 billion; Bt11.73 billion to the trading sector; Bt8.73 billion loss of public property; Bt2.21 billion to housing; Bt1.89 billion to tourism; and Bt1.48 billion to the industrial sector.
Of the estimated losses, Bt32.41 billion was due to the flooding impact from July to September, while Bt26.07 billion was from flooding in the southern part in April-May this year. “Despite the government’s economic stimulus package, the Thai economy is at high risk of a slowdown in growth due to severe floods.
Read the complete analysis here: Floods to cast shadow over economic growth: UTCC study.
Urgent action is being taken to push floodwater out into the sea in order to protect Bangkok and nearby provinces from flooding between September and October this year.
The action came after a meeting of representatives from various relevant agencies to discuss “Strategy: The Greater Bangkok Approach.”
The meeting, chaired by Prime Minister Yingluck Shinawatra, took place at Santi Maitri Building, Government House, in Bangkok on September 21. Also attending the meeting were governors of seven provinces, namely Bangkok, Nonthaburi, Pathum Thani, Samut Prakan, Chachoengsao, Nakhon Pathom, and Samut Sakhon.
Prime Minister Yingluck told the meeting that she had assigned Cabinet members to work closely with provincial governors in tackling the flood problem, based on the “2P2R” process. “2P2R” stands for “preparation, response, recovery, and prevention.”
The Prime Minister said that the Government had approved compensation of 5,000 baht as immediate assistance for each flood-hit family. The people whose farmland was affected by floods will receive 2,222 baht in compensation for each rai, or 0.4 acre, of damaged rice field.