Post-flood reconstruction to boost 2012 GDP
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Thailand's economy would expand only 2.7-3.5 per cent this year, due to the heavy losses from floods, according to Krungsri Research.
It earlier expected the economy to grow 3.5-4.5 per cent this year.
"The lower growth takes into account only output losses, not damage to properties, machinery and infrastructure. The actual losses, if these are combined, could be a lot higher," it said in the research note.
Next year, the gross domestic product could expand at 4-5 per cent, due mainly to the post-flood reconstruction as well as investment by the private sector to prevent themselves from another disaster. However, such investment would temporarily boost the economy and may not improve the spending sentiment much, the research house said.
