Earthquake Shakes Thailand’s Economy: Short-Term Trouble Looms

[webfact]

A Thai army soldier stand guard as heavy earthmovers are employed to clear the debris at the site of an under-construction high-rise building that collapsed after an earthquake in Bangkok, Thailand, Monday, March, 31, 2025. (AP Photo/Manish Swarup)

 

An earthquake in Mandalay, Myanmar, rocked Thailand on Friday, causing tremors felt across the country. Deputy Finance Minister Julapun Amornvivat confirms the tremors will affect Thailand's economy in the short term, especially the property sector. Despite this, the ministry sticks to its 3% GDP growth goal for the year.

 

In response to the quake’s damage, the Finance Ministry has unveiled a three-pronged plan. It includes releasing THB 200 million to the Department of Disaster Prevention and Mitigation, financial institutions offering loans, and the Insurance Commission fast-tracking compensation for insured homes and individuals.

 

The State Audit Building's collapse won’t cause liquidity issues as it’s insured with four firms, distributing risk globally.

 

 

 

Officials are discussing compensation for earthquake victims, examining the 2004 tsunami disaster payouts as a guideline. The Kasikorn Research Centre places the quake damage estimate at THB 20 billion, primarily affecting property and tourism. This seismic event may chip away at GDP growth by about 0.06%.

 

Adding to the financial pressure, a potential 25% tariff from the US looms, possibly reducing GDP by another 0.3%. Financial institutions face mounting challenges, including weakened debt quality.

 

The Bank of Thailand may revise its policy rate sooner than anticipated, with a possibility at this month’s meeting. Kasikorn Research projects a rate target of 1.75%, following a 0.25% cut that brought the rate to 2% in February.

 

In summary, while Thailand feels the quake’s impact economically in the short term, measures are in place to soften the blow. Long-term effects remain manageable with GDP targets upheld and the government mobilising resources and plans.

 

Based on a story by Thai Newsroom

 

-- 2025-04-02

 

 

[ozz1]

At least they are optimistic maybe a bit too soon to tell what impact it will have

[Artisi]

They should be able to get a few years of gloom based on the earthquake, after which they will need another excuse to cover there inadequacies