Floods cost agriculture & industry 60-90 Billion THB

BANGKOK, 10 October 2011 (NNT) – The Bank of Thailand and the National Economic and Social Development Board have estimated an economic loss brought on by floods at 60-90 billion THB.

Speaking after a meeting with officials from the BOT and the NESBD, Finance Minister Thirachai Phuvanatnaranubala revealed that the central bank had calculated the economic damage resulting from floods at 60 billion THB, accounting for 0.6 percent of the GDP. The NESDB had forecast the loss to be 80-90 billion THB, affecting the GDP by 0.8-0.9 percent.

The agricultural sector is predicted to suffer 40 billion THB in loss. The industrial sector is likely to bear 48 billion THB in damage. Saha Rattana Nakorn Industrail Estate and Rojana Industrial Park in Ayutthaya have been hardest hit.

The Finance Minister said that the government would continue with its financial policy and would cut bureaucratic red tape to speed up budgetary approvals for flood rehabilitation process. As for 2012, the budget distribution will center on repair work of public facilities and other relief measures.

Meanwhile, Deputy PM and Commerce Minister Kittirat Na Ranong has asked the NESDB to study the impact of floods on the GDP. The issue will be discussed at the cabinet meeting on Tuesday.