PUBLISHED: 2 Sep 2024 at 20:20
The Thai Chamber of Commerce has raised alarms about the significant economic repercussions stemming from recent floods in northern provinces. If the flooding persists for an additional month, financial losses could surpass 10 billion baht.
According to estimates provided by the Thai Chamber of Commerce and the University of the Thai Chamber of Commerce, the total damage from the current floods is anticipated to reach around 8 billion baht, accounting for 0.05% of the nation’s GDP, should conditions improve within two weeks.
The agriculture sector has been hit hardest, suffering losses of approximately 7.17 billion baht, which constitutes 89.6% of the total damage. The service sector has faced damages estimated at 693 million baht, while the industrial sector accounts for about 139 million baht in losses.
Chiang Rai has experienced the most severe impacts, with estimated damages totaling 3.63 billion baht, followed by Phayao at 2 billion baht and Sukhothai at approximately 1.36 billion baht.
Concerns remain high for several other provinces that are at risk of flooding. If the current situation does not improve, projections indicate financial damage could exceed 10 billion baht, representing 0.06% of GDP.
To address the situation, it has been proposed that the government establish a forward command center led by the Prime Minister, along with a comprehensive flood response plan aimed at managing runoff from the northern regions.
Government officials have been urged to brace for additional rainfall expected later this month and in October, which may exacerbate flooding risks. Effective planning is viewed as essential to mitigate impacts and minimize damage to both the population and the economy.
Furthermore, a rehabilitation strategy is needed for affected individuals and businesses, which should encompass debt suspension, interest rate reductions, and accessible soft loans.
Despite these challenges, experts believe that the likelihood of Bangkok and its neighboring provinces facing flooding on the scale of the 2011 disaster is low. Factors supporting this outlook include lower accumulated rainfall this year, fewer anticipated storm systems, significant dam capacity, currently low water levels in major rivers, and reduced flow rates in the Chao Phraya River.
In response to rising water levels, the Chao Phraya Dam is preparing to increase water discharge as runoff from the northern floods reaches central provinces.
According to the Water Management and Hydrology Bureau, there will be an increase in the water release rate over the next five days as floodwaters flow downstream into central regions.
The Office of National Water Resources has issued a warning regarding potential flash floods across all regions this week, with provinces such as Sukhothai, Phitsanulok, Nong Khai, Rayong, Phuket, and Surat Thani on high alert.
