Sunday 27 November 2011

Thai economy shrinks on flood woes

The World Bank assessment suggests that Thailand economic growth will shrink to 2.4% from the previously projected 3.6%, following the recent flood in the country, Press TV reports.


Experts believe it will probably take a year of hard work and billions of dollars before Thailand fully recovers.

The cost of flooding is estimated to be around $43 Billion, but the amount is expected to rise further due to the high water in some parts of the country.

According to estimations the damage inflicted on the houses and factories will likely account for $19 Billion of the total flood cost, while lost production during the floods will account for about $22 billion.

To make the situation worse, Thailand's baht has seen the biggest weekly decline in two months and reduced export growth to a two-year low.

As a report prepared by the Thai government indicates one of the main reasons for the currency's fourth week free fall is that the overseas shipments rose 0.3% last month, after a 19.1% gain in September.

As the experts maintain the Thai government's first priority is to focus on those who are directly affected by the flood.

Working on an effective flood management plan which includes measures as construction of flood barriers around industrial states, comes next.

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