An initial estimate of the southern flood aftermath indicates that national economic growth for the first half of the year will likely be lower than the projected 3% which could result in a shortfall of more than 27 billion baht.
The CIMB Bank Thailand Research Office revealed that although the full economic impact of the southern flood crisis will take time to assess, the farming sector will take the worst hit.
This is due to the fact that it will be some time yet before rubber and palm farmers are able to return to their plantations which will have borne the brunt of the flooding.
In 2016 farming sector in the South contributed to 8% of the GDP.
But as a result of the flood, the national economic growth for the first half of 2017 will not be able to meet the 3% projection. Total growth for the entire year has consequently been adjusted to only 3.2%
At the same time, Thai Military Bank’s research office supported this assertion by citing that approximately 27.4 billion baht will be lost from the southern economy as a result of the flood crisis.
The drop in southern rubber production will cause a reduction of 6.3% of total rubber production for the entire country and is estimated to be worth almost 20 billion baht.
Palm oil production meanwhile will see a shortfall of 4.8% a loss of approximately 3 billion baht.
Another sector that will be drastically hit is shrimp farms that will see losses of around 838 million baht and will take no less than 3 � 4 months to recover.
Source: Thai Public Broadcasting Service (Thai PBS)