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(ICIS) -- Widespread flooding in Thailand
will shave the country’s economic output this year, slowing its GDP growth by as
much as a full percentage point, given the heavy disruption caused on domestic
production, industry sources and analysts said on Wednesday. The Thai capital of
Bangkok is on high alert as floodwaters from the central provinces could break
through the protective barriers built around the city, they said.
In the provinces of Uthai Thani, Chai Nat, Sing Buri, Ang Thong, Suphan
Buri, Ayutthaya, Pathum Thani and Nonthaburi, heavy rains caused rivers to
overflow, with the water rushing where Bangkok lies.
Considered as Thailand’s worst in 50 years, the floods have swept across
60 of the country’s 77 provinces over past two months, killing at least 281
people and shutting down production at hundreds of factories, according to media
reports.
The Thai economy is forecast to grow at 3.5% in 2011, barely half the
pace of expansion recorded last year, according to the International Monetary
Fund’s latest World Economic Outlook report in September.
With the devastation being wrought by the flooding, the projected slow
GDP growth could be shaved by 0.6-0.9%, with the losses likely to be as high as
baht (Bt) 80bn ($2.58bn), according to estimates of government agencies.
Thailand is expected to sustain huge damage to its agricultural sector,
estimated at Bt54bn ($1.7bn), according to DBS Vickers. For industries, the
losses are forecast at Bt20bn; Bt9.8bn for trade, and; Bt5.7bn for tourism, the
brokerage said.
mrcplast.com
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