Economic cost worsens as Thai floods continue

2011-10-15 06:58:54 GMT+7 (ICT)

BANGKOK (BNO NEWS) -- The devastating floods that have been hitting large parts of Thailand for the past months have dealt a heavy blow to the economy as hundreds of factories are under water, local media reported on Friday.

The monsoon-season floods, which have claimed nearly 300 lives in recent months, could lower Thailand's gross domestic product (GDP) by more than the central bank's previous estimate of 60 to 90 billion baht ($2.9 million), Finance Minister Thirachai Phuvanatnaranubala said. He added that the Bank of Thailand's projection was made before the floods inundated many factories in the industrial estates of Ayutthaya province, the Bangkok Post reported.

The minister said the floods have caused damage to equipment in the flooded industrial plants, but the full extent of the damage has not yet been assessed. However, he added that the ultimate flood damage might not be extremely severe because most factories have insurance policies.

"The flooding will have an impact on the country's economic growth, but I believe the implementation of the government's policies will offset the flooding's negative consequences to some extent," Deputy Finance Minister Wirun Techapaiboon said, as quoted by the Bangkok Post.

The Federation of Thai Industries (FTI) estimates the cost of damage caused by the floods in the Central Plains region at 190 billion baht ($6.1 billion) after the waters surged into the Hi-Tech Industrial Estate in Ayutthaya, where there are 143 factories. FTI chairman for the central region Sing Tangcharoenchaichana predicted that the final cost would double if the flooding continues longer than two months, the newspaper reported.

Damages at the Rojana Industrial Park, with 300 factories, the Bang Pa-in Industrial Estate, with 98 factories, and the Saha Rattananakorn Industrial Estate, with 46 factories, are estimated at 50 billion baht ($1.6 billion).



More than 900 large factories have been shut in parts of Thailand in recent weeks. Industry Minister Wannarat Channukul previously said hundreds of industrial plants have been inundated by the floods, affecting more than 200,000 workers.


Thailand has been hit by unusually heavy monsoon rains in the past months, killing scores in flood-related incidents and affecting thousands of villages. In April and May, Thailand was also hit by flooding in the country's southern region, causing billions in damages to their fishing industry, industrial sector, tourism, and business and trade, among other areas.

-- © BNO News All rights reserved 2011-10-15

Yet, unbelievably the Thai Baht still stands strong against all the western currencies. Simply, unbelievable.

Numerous topics in the Thai news on this subject:

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