Floods could cost Bt120 bn if not subside soon:TCC
THE SOUTHERN flooding could cost the economy between Bt85 billion and Bt120 billion if it lasts two to three months, the Board of Trade of Thailand and Thai Chamber of Commerce estimates.
Vichai Assarasakorn, vice chairman of the TCC, said that if the floods subsided within the next week or two, the cost would be only about Bt10 billion to Bt15 billion, or 0.1 per cent of the country’s gross domestic product. But if the inundation lasts for two to three months, the cost will be 0.5-0.7 per cent of GDP because of the time needed to repair the damage and rehabilitate affected sectors of the economy.
“The highest losses are in the agricultural sector, particular in two key southern economic crops, rubber and palm, as they take a long time to grow. Rubber needs eight to 10 years, while oil palm needs three to five years. During the waiting period, farmers would have no income, and that would create problems for the economy in the South,” Vichai said.
