Post-strom US spending likely to benefit Thailand in'13

It sounds cruel to say so, but it’s a fact: Thailand, far from feeling any negative impact from Hurricane Sandy, actually anticipates indirect benefits in the aftermath of the deadly and costly superstorm, which left a trail of destruction in the Caribbean and the US.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong was right to say that Thailand may be able to expect some good things in the aftermath of the superstorm, which caused over 90 deaths and huge damage to property. As Thailand experienced in the wake of last year’s floods, property damage requires reconstruction. This investment will create jobs and boost spending. In a way, reconstruction in the US could give a boost to the fragile economy and benefit the global economy.
Echoing his thoughts was Akhom Termpittayapaisit, secretary-general of the National Economic and Social Development Board (NESDB). At a seminar on Thursday, he expected that the reconstruction budget could amount to US$40 billion-$45 billion (Bt1.23 trillion-Bt1.39 trillion). Along with the US quantitative easing programme, this would be a boon to the Thai economy next year.
Historical records show that Hurricane Katrina, which hit the US in 2005, was by far the costliest storm in history, causing damage of about $147 billion (based on the dollar value in 2012).
According to a report by financial advisory and investment-services firm OSK Group, the impact of Hurricane Sandy on the US’s gross domestic product will be huge. While the loss of economic activity could be more or less offset by activity from rebuilding efforts, the negative imprint on general economic well-being and the extent of human suffering are immeasurable, the firm said.
Early estimates from catastrophe modellers suggest that the economic damage (which differs from estimates of insured losses) from Hurricane Sandy might be in the range of $10 billion to $20 billion, which is around the average economic costs from prior hurricanes and tropical storms to have hit the US since 1980.
OSK Group’s estimate using the US Bureau of Economic Analysis’s state-wide GDP data puts the upper threshold of the economic damage at roughly $39 billion, which is still substantially less than the record devastation from Hurricane Katrina.
The estimate implies a likely impact on real GDP growth in the fourth quarter from Hurricane Sandy of 0.1-0.5 percentage point. Still, the report expected reconstruction efforts to boost the economy in the first half of 2013, which is when Thailand should start to witness the indirect positive impact of the storm.