ESCAP: Flood-affected Asian countries likely to face economic slowdown in 2012

BANGKOK, December 16 (TNA) - Southeast Asian countries, including Thailand, which were hit by floods this year, are likely to grow slightly less than expected in 2012. According to the Economic and Social Survey of Asia and the Pacific 2011:Year-end Update, published by the United Nations Economic and Social Commission for the Asia and the Pacific (UN-ESCAP), this year's floods in Southeast Asian economies, including Cambodia, Lao PDR, the Philippines, Thailand and Vietnam, were estimated to have caused a cumulative production loss of about 6.3 billion dollars, or 0.9 per cent of their combined gross domestic product (GDP). The ESCAP report said that in case of Thailand, which was worst hit by this year's floods in the region, would likely experience a drop in GDP by 1.3 per cent, compared to flood-borne GDP reductions of 0.3 per cent each in Lao PDR, Myanmar and the Philippines, and that post-flood economic recovery and investment were projected to cushion economic growth in the flood-affected countries in 2012. ESCAP recommended new investment in these countries, including strategic agricultural projects, as well as improvements of urban planning and land use to reduce disaster risks, as part of their national recovery and reconstruction efforts. The ESCAP report projected, meanwhile, Singapore’s 2011 economic growth at some 5.2 per cent, but it would slightly drop to 3.0 per cent next year; while Indonesia would likely maintain its robust growth performance of 6.5 per cent next year. (TNA)