The devastating floods have caused 1.4 trillion baht in estimated damage and are likely to slash Thailand's economic growth to 2.4% this year, the World Bank says.
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| All washed up - Piles of flood-damaged television sets and other electrical appliances are left by their owners on a pavement on Phahon Yothin Road. A post-flood boom in the home-making and electrical appliances businesses is expected. |
The grim assessment was unveiled yesterday by the bank's country director Annette Dixon after a meeting with Virabongsa Ramangura, chairman of the Strategic Committee for Reconstruction and Future Development.
Of the estimated damage, around 660 billion baht involves property losses and 700 billion baht comprises lost opportunities.
The initial survey was jointly carried out with state and private agencies.
Based on the estimate, Thailand's economic growth will tumble to 2.4% from 3.6% projected previously, said Ms Dixon.
However, she said the impact from the floods would not be all negative as it would spur spending.
She said economic growth would continue next year as a result of rehabilitation and rebuilding spending by both the public and private sectors.
The World Bank's damage survey and assessment covers four sectors: public infrastructure such as transport and telecoms; manufacturing such as farming, tourism and industry; social development such as education and public health; and the environment.
It has also proposed a short-term rehabilitation plan that calls for a focus on those directly affected by the floods.
According to the World Bank, the government has rolled out several relief measures and assistance, but it should do more to help make access to this information available to the poor.
It has called on the government to ensure that affected farmers are given every assistance possible as they will soon resume work.
They need high-quality seeds, repairs to farm equipment and improvements to infrastructure.
The World Bank has also made suggestions about flood management, including construction of flood barriers around industrial estates, implementation of the royally initiated water management projects and application of the flood control plan for the Mekong region by the Japan International Cooperation Agency (Jica).
Ms Dixon said the World Bank has not made any suggestions about economic stimulus. The planned rehabilitation efforts would do the work as soon as they are under way.
The World Bank will conduct another round of assessments after the floodwater recedes, Ms Dixon said.
Mr Virabongsa said yesterday that he has been assured by the Japan External Trade Organisation (Jetro) and Jica that Japan would not move its production bases out of Thailand.
He said that compared with other countries in the region, Thailand remains strong in terms of public infrastructure and a skilled labour force.
He said that Toyota Motor Corporation is committed to its goal of manufacturing one million vehicles next year and increasing its production to 2.5 million vehicles in the next five years.
Toyota was among several Japanese automakers that were were hit hard after several industrial estates were submerged.
Mr Virabongsa, Finance Minister Thirachai Phuvanatnaranubala, Industry Minister Wannarat Channukul and Deputy Finance Minister Wirun Techapaiboon yesterday witnessed the signing of a memorandum of understanding on loans for development of a flood prevention system for the country's industrial estates.
Under the memorandum signed between the Government Savings Bank (GSB) and the Industrial Estate Authority of Thailand, the bank will provide 15 billion baht in soft loans to support the implementation of the flood prevention plan going forward.
Four industrial estates that were badly hit by the flooding, Rojana Industrial Park, Bang Pa-in Industrial Estate, Nava Nakorn Industrial Estate and Bang Kadi Industrial Park, have joined the loan scheme.
Loan approvals are expected next month.
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