PUBLISHED: 2 Sep 2024 at 20:20
The Thai Chamber of Commerce (TCC) has raised alarms over the significant economic repercussions from recent flooding in northern provinces. If the flooding persists for another month, financial losses could surpass 10 billion baht.
According to estimates from the TCC and the University of the Thai Chamber of Commerce, TCC chairman Sanan Angubolkul reported on Monday that the current flooding could result in approximately 8 billion baht in damages, equivalent to 0.05% of GDP, if recovery occurs within the next two weeks.
The agriculture sector has sustained the most severe impact, facing losses of 7.17 billion baht, which constitutes 89.6% of the total damages. The service sector follows with estimated losses of 693 million baht, while damages in the industrial sector are projected at 139 million baht.
Chiang Rai has been identified as the hardest-hit province, incurring losses of about 3.63 billion baht. It is followed by Phayao and Sukhothai, with damages estimated at 2 billion baht and 1.36 billion baht, respectively.
Should the flooding persist, forecasts indicate that financial impacts may exceed 10 billion baht, equating to 0.06% of GDP, as highlighted by Mr. Sanan.
He urged the government to establish a command center led by the Prime Minister and develop a thorough flood response strategy to manage runoff from the northern regions.
“The government must also brace for additional rainfall anticipated this month and in October, which may exacerbate flooding,” he emphasized, advocating for proactive measures to reduce damage to both citizens and the economy.
Mr. Sanan called for the formulation of a rehabilitation plan focused on supporting affected individuals and businesses, which should incorporate debt relief, interest rate reductions, and accessible soft loans.
Bangkok Faces Lower Risk
Despite concerns in the north, Mr. Sanan conveyed that the likelihood of severe flooding in Bangkok and neighboring areas remains low compared to the catastrophic events of 2011.
He outlined five key factors supporting this outlook: reduced cumulative rainfall this year, fewer predicted rainstorms, improved water retention capabilities in major dams, currently low river levels, and a reduced flow rate in the Chao Phraya River.
In the meantime, the Chao Phraya Dam is expected to increase its water discharge as levels rise due to runoff from northern flooding.
Thanet Soomboon, director of the Water Management and Hydrology Bureau, announced that the release rate would be heightened over the next five days in response to the rapid influx of water from northern floods moving downstream to central regions.
The Office of National Water Resources has also issued warnings about potential flash floods across all regions for this week, with several provinces, including Sukhothai, Phitsanulok, Nong Khai, Rayong, Phuket, and Surat Thani, on high alert.
