Economy to escape major hit from floods

Southern deluge to cut growth by 0.2%

- WICHIT CHANTANUSORNSIRI SOMRUEDI BANCHONGDUANG

Prime Minister Anutin Charnvirakul leads the economic cabinet to visit flood-affected victims in Hat Yai, inspecting damage and distributing daily necessities to assist communities affected by severe floods.

Deadly flooding in the South has had a limited impact on the national economy, with the Bank of Thailand estimating it will reduce national GDP growth by no more than 0.2%.

Speaking after a seminar hosted by the Thammasat Economics Association yesterday, Bank of Thailand governor Vitai Ratanakorn said while Hat Yai typically contributes about 2.6% of Thailand’s GDP, the overall impact of the floods on the national economy will be limited. The central bank estimates the effect on GDP growth at 0.1-0.2%.

According to Mr Vitai, the central bank is coordinating with the Thai Bankers' Association to roll out debt relief measures for flood-affected residents in Hat Yai.