Floods could reduce Thailand's economic growth by 1 percentage point: World Bank

People row a boat in the floodwaters in Bang Ramintra district in Bangkok, Thailand, Nov. 22, 2011. The situation has improved dramatically in recent days and cleanup has begun in many areas.

The devastating floods in Thailand could reduce the country's 2011 economic growth by around 1 percentage point, the World Bank said in a report released on Tuesday.

The Thai economy is projected to grow by 2.4 percent this year, the bank said in its latest East Asia and Pacific Economic Update.

This represents a downward revision from the bank's previous forecast of 3.7 percent released six months ago, mainly due to the impact of the floods and the weakening external demand from the developed markets.

"The impact of the floods will be most severely felt in the last quarter of 2011, coming mainly from production losses of the industrial estates in the vicinity of Bangkok," said the report.

The World Bank said the estimates of the losses from the floods in southeast Asian countries were not yet complete.

Thailand experienced rarely-seen floods over the past weeks, forcing the closing-down of many factories and quite a part of the capital Bangkok.

The World Bank also revised the growth forecast for Thailand in 2012 by 0.2 percentage point to 4 percent. Factors supporting growth include the reconstruction and rehabilitation by both the public and private sectors after the floods,

dissipation of supply chain disruptions, a momentum in household consumption and likely solid performance of private investment following the improved political stability.

The bank revised its growth forecast for developing East Asia excluding China downward from 5.3 percent to 4.7 percent. China is expected to grow by 9.1 percent this year and 8.4 percent next year, respectively.

8 killed in flood in Iran

Eight people were killed and more than 60,000 others were displaced by a flood that hit Iran's southwestern provinces of Khuzestan and Kohgiluieh and Boier-Ahmad on Sunday, the local Mehr news agency reported Monday.

Mahmoud Mozaffar, an official at the Iranian Red Crescent Society, told Mehr that at least 11 villages have been affected by Sunday's flood.

People affected by the flood have been provided with temporary shelters and the injured received treatment, Mozaffar was quoted as saying.

Flash floods, landslides warned in southern Thailand

Thailand's National Disaster Warning Center on Tuesday warned over possible flash floods and landslides in the southern region during Nov. 22 to 24.

The eastern side of the southern region including Nakhon Si Thammarat, Pattalung, Songkhla, Pattani and Narathiwat provinces were among those to be lashed severely by heavy rains.

Flash floods and landslides are very likely in those provinces, according to the center's prediction. Authorities in risk-prone areas were directed to get ready and closely follow up information issued by the center and the Information and Communications Technology Ministry.

Since late July, the whole country, except for the southern region, has suffered from the most severe inundation in over half a century. Some 13 million people across the nation have been affected while more than 600 people were killed.

Thai public pushes for flood relief fund

Thailand's worst flooding in 50 years is continuing to recede, but residents in the southwestern suburbs of Bangkok are still struggling in meter deep water.

On Monday, Thailand’s disaster relief headquarters announced it will take suggestions from public representatives in flooded regions.

Representatives have asked that the government's relief fund, be half of total damage costs, rather than the160 US dollars per family it has already pledged. 

Meanwhile, Thailand's Crown Prince went to the country's relief headquarters to distribute aid to flood-affected people. 

He said measures have been taken to drain the water out of the Bangkok's central areas, and that clean-up work is well under way.

Thai flood death toll reaches 606

People walk in the floodwaters in Bang Ramintra district in Bangkok, Thailand, Nov. 22, 2011. The situation has improved dramatically in recent days and cleanup has begun in many areas.

A total of 606 people were confirmed dead and three others still missing in the floods that have inundated the upper part of the country for about four months, the Disaster Prevention and Mitigation Department reported on Tuesday.

Four more people were confirmed dead on Monday in central provinces of Angthong and Sa Kaew.

Floods were caused by the heavy monsoon "Nock-Ten" and overflow from several dams in upper part of the country since mid July.

On Tuesday, floods still prevail in 17 of the 77 provinces and affect about 5.1 million people of 1.9 million households.

The floods have affected about 4 million households and about 13.4 million people in 64 of the 77 provinces since July 25.

Thailand's annual GDP may shrink to 1.5% due to flood

Thailand's annual GDP is projected to drop in the fourth quarter due to repercussion from worst-flood in 50 year, Bangkok Post reported on Tuesday.

The Thai economy is projected to contract by 3.7 percent in the fourth quarter, down from a previous projection of 5 percent before the floods, depressing annual growth to 1.5 percent from the earlier projection of 3.5 percent to 4 percent, according to the National Economic and Social Development Board (NESDB).

The country's worst floods, caused by heavy monsoon and overflow from several dams in upper part of the country, in nearly 60 years has claimed more than 600 lives and affected about 10 million people since mid July.

A better outlook is projected for next year with 4.5 percent to 5.5 percent economic growth, the NESDB said on Monday.

The NESDB estimated the floods would damage the Thai economy by 2.3 percent, or around 200-300 billion baht (6.4 - 9.6 million U.S. dollars).

The figure is an initial projection, but the real impact depends on how quickly the government and companies can repair infrastructure and operations. 

Some have set a target of 45 days after the water recedes to resume production, except for the electronic sector, which will need up to six months.

The agency announced that the GDP growth of 3.5 percent in the third quarter, exceeding 2.7 percent in the second quarter and 3.2 percent in the first, supported by the recovery of industrial manufacturing after the tsunami in Japan. 

The GDP of the industrial sector in the quarter was 3.1 percent, rebounding from a contraction of 0.1 percent in the second quarter.

Export value rose 27.3 percent year-on-year and private investment and tourism also grew, said NESDB Secretary-General Arkhom Termpittayapaisith.

However, the floods caused a contraction by 0.9 percent in the agricultural sector, slicing 0.7 percent off overall economic growth in the third quarter.

For the initial nine-month period, the NESDB reported economic growth of 3.1 percent.

GDP value at current prices is projected at 10.66 trillion baht, down from a previous projection of 10.87 trillion. The projection is based on oil priced at 103-107 U.S. dollars a barrel.

The projection for investment growth this year was cut to 4.7 percent from 6.2 percent. Private investment is projected at 8.8 percent growth while government investment should contract by 7.9 percent.

Consumption growth is projected at 2.3 percent, down from 3.3 percent previously. Export growth is projected at 17.2 percent growth to 226.9 billion U.S. dollars and inflation at 3.8 percent.

He expects flood rehabilitation and the continued growth of Asian economies will contribute to the higher figures.

Risk factors are a delay in rehabilitation in both the industrial and household sectors, the euro zone debt crisis, oil prices and the government's ability to build a water management plan next year.

Flash floods, landslides warned in southern Thailand

Thailand's National Disaster Warning Center on Tuesday warned over possible flash floods and landslides in the southern region during Nov. 22 to 24.

The eastern side of the southern region including Nakhon Si Thammarat, Pattalung, Songkhla, Pattani and Narathiwat provinces were among those to be lashed severely by heavy rains.

Flash floods and landslides are very likely in those provinces, according to the center's prediction. Authorities in risk-prone areas were directed to get ready and closely follow up information issued by the center and the Information and Communications Technology Ministry.

Since late July, the whole country, except for the southern region, has suffered from the most severe inundation in over half a century. 

Some 13 million people across the nation have been affected while more than 600 people were killed.