Flooding in northern and north-eastern provinces in September has caused economic losses estimated at about 75 billion baht or 0.5% of GDP, while the ongoing flooding in southern provinces may cause damage costing between 5 and 10 billion baht, or 0.03-0.06% of GDP, according to Sanan Angubolkul, chairman of the Joint Standing Committee on Commerce, Industry and Banking.
Sanan said that the agricultural sectors in the northern, north-eastern and southern regions have been hardest affected, with total damage of up to 85 billion baht, or 0.6% of GDP.
He said, however, that the Thai private sector has forecast that Thailand’s economic growth this year will be 2.8%, with the fourth quarter seeing growth of 4%, thanks to a better than expected uptick in exports and the disbursement of the public sector budget.
Amidst uncertainties, Sanan said the private sector has forecast growth for next year to be at least 3%, due to the implementation of stimulus packages by the government, such as investments in infrastructure projects, financial help for the SMEs and small scale debtors and long-term land lease contracts to attract foreign investors.
Nonetheless, Sanan warned about the risk of higher US import taxes, which may be imposed by the Trump administration, such as those on electronic appliances, automobiles, car tyres and plastic pellets from Thailand.
He urged the public and the private sector to join forces to prepare for tax increases and a possible trade war.
