World Bank: Flooding Threatens Thailand's Economy, Urges Government to Prioritize Action
World Bank warns flooding threatens Thailand's economy, urging urgent action. Effective water management crucial for future investment and sustainable growth.
Melinda Good, Director of the World Bank for Thailand and Myanmar, has warned that flooding represents a serious threat to the foundation of Thailand's economy. She urged the government to treat flood management as an urgent priority, emphasizing that failure to act could result in missed business opportunities. Investors may hesitate to establish production bases in Thailand if water management issues are not addressed effectively.
Speaking at the Spotlight Day 2025 event, titled “From Risk to Resilience: World Bank's Vision for Thailand and ASEAN”, Good highlighted the increasing impact of climate change, particularly flooding, which is becoming more severe. She stressed that if left unaddressed, these impacts could have devastating effects on Thailand's economy. The World Bank’s Country Climate and Development Report (CCDR) indicates that climate change could result in a loss of 7-14% of Thailand’s GDP by 2053 if its effects are not mitigated.
Good further emphasized that for Thailand to achieve high-income status and sustainable growth of 5%, flood management must become a top priority. She warned that ignoring water management would lead to disruptions in supply chains, weakened agricultural productivity, and reluctance from investors if assets remain unprotected from flooding.
The Chao Phraya River Basin, which accounts for 40% of the country’s population and generates two-thirds of its GDP, was also highlighted as strategically vital. To support water management, the World Bank is promoting the swift implementation of nine key plans for the Chao Phraya Basin, aimed at preventing large-scale flooding from damaging the economy.
In addition, Good pointed out the importance of a stable water supply for attracting future investments, particularly in emerging industries like data centers. These centers require reliable water for cooling, in addition to affordable, clean energy. The World Bank is working with the Eastern Economic Corridor (EEC) to ensure safe water management, helping attract investment in these vital sectors.
Good concluded by stressing that effective flood and drought management is key to reducing Thailand’s economic vulnerabilities and enhancing its credibility with global investors and trade partners.
