Pundits assess disaster's impact on Thai growth

The final impact of the devastating floods in the South on GDP growth will depend on the speed of recovery and reconstruction, say analysts, as the government could expedite disaster relief cash handouts to affected households in the less prosperous region.

- NAREERAT WIRIYAPONG.

Major cleaning and reconstruction efforts have already started in Hat Yai, which was hit the hardest by the southern floods.NUTTHAWAT WICHIEANBUT

(NUTTHAWAT WICHIEANBUT)

Chaiyot Jiwangkul, head of research at Krungsri Securities, said the southern floods that have affected 10 provinces are estimated to reduce GDP growth in the fourth quarter to a range of 0.1-0.5%.

“However, recovery takes time and that could make Thailand lag other countries in the region in terms of economic expansion. We will continue to monitor the government's relief measures,’ said Mr Chaiyot.

Apichart Phubunjerdkul, head of strategy research at Tisco Securities, said the floods destroyed tourism and economic activities in the South.