ID :
148847
Fri, 11/05/2010 - 09:52
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http://m.oananews.org//node/148847
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Major floods cost Bt32.4-54.2 billion loss to economy: KRC
BANGKOK, Nov 5 – Severe floods devastating more than 40 provinces in Thailand's northeastern, central, northern, and southern regions during October and November have inflicted 32.4-54.2 billion baht in damages to the economy, according to Kasikorn Research Centre (KRC).
However, the leading think tank believed a new amount of money would be injected into the economic system through government spending to compensate and rehabilitation for the damages.
Private sector companies are expected to allocate funds to repair damaged properties, procurement, and donations for flood victims.
Simultaneously, entrepreneurs would step up production and marketing activities to offset the shortfall in revenue experienced during the flooding.
Because of this, KRC projected the inundation would cost around Bt15.6-30.5 billion in lost economic growth or make the gross domestic product (GDP) drop by 0.6-1.2 per cent in the fourth quarter of this year.
In addition, it might bring up the inflation rate in the last quarter to 2.9-3.1 per cent from the earlier expectation of 2.6 per cent in case no flooding occurs.
For the whole year, the GDP is forecast to reduce by 0.15-0.31 per cent to 6.8-6.9 per cent from 7.1 per cent projected earlier while the inflation rate is anticipated to rise to 3.3-3.4 per cent from 3.26 per cent in case of no floods. (MCOT online news)
However, the leading think tank believed a new amount of money would be injected into the economic system through government spending to compensate and rehabilitation for the damages.
Private sector companies are expected to allocate funds to repair damaged properties, procurement, and donations for flood victims.
Simultaneously, entrepreneurs would step up production and marketing activities to offset the shortfall in revenue experienced during the flooding.
Because of this, KRC projected the inundation would cost around Bt15.6-30.5 billion in lost economic growth or make the gross domestic product (GDP) drop by 0.6-1.2 per cent in the fourth quarter of this year.
In addition, it might bring up the inflation rate in the last quarter to 2.9-3.1 per cent from the earlier expectation of 2.6 per cent in case no flooding occurs.
For the whole year, the GDP is forecast to reduce by 0.15-0.31 per cent to 6.8-6.9 per cent from 7.1 per cent projected earlier while the inflation rate is anticipated to rise to 3.3-3.4 per cent from 3.26 per cent in case of no floods. (MCOT online news)
