The University of the Thai Chamber of Commerce (UTCC) has produced an economic damage estimate for the widespread flooding in Thailand. The university expects 12-20 billion baht in damages, which it said will impact GDP by 1-1.5%. Meanwhile, the consumer confidence index (CCI) has risen for the 4th consecutive month in September.
UTCC President Thanavath Phonvichai reported September’s CCI stood at 44.6 and has now risen for the 4th consecutive month. The index is at its highest level in 8 months. Dr. Thanavath said the primary reason for the improvement was consumers’ sentiment about the economy improving, due to the lifting of the Covid situation. At the same time, foreign tourists have been able to enter Thailand more conveniently due to the lifting of Covid restrictions. The benzene price has also fallen significantly from its peak in the first half of the year.
Nonetheless, Dr. Thanavath said consumers remain worried about the high cost of living and the Russia-Ukraine war. The upward adjustment of policy interest rates in many economies also poses a concern for consumers. He said these factors may cause the Thai economy to grow less than the target range of 3.0-3.5%.
The UTCC president said economic recovery signals are still fragile. Thus, the state sector needs to step in to handle damages from floods, subsidize energy prices and regulate interests. The state would also need to keep the cost of production at businesses from rising to an extent that jeopardizes business recovery.
The UTCC indicated recent widespread floodings in Thailand will create 12 to 20 billion baht of economic losses. This will impact GDP by 1 to 1.5%.(NNT)
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