BANGKOK, Thailand – The Federation of Thai Industries (FTI) has estimated that recent floods in Northern and Northeastern Thailand have caused between 30 and 50 billion baht worth of economic damage.
The FTI urged the government to introduce further economic stimulus measures for the remainder of 2024, including tax incentives to boost spending and promote domestic tourism.
Nava Chantanasurakon, Vice Chairman of the FTI, reported these figures and stressed the urgent need for government action. He highlighted the widespread impact of the floods on households, agriculture, industry, and tourism, all of which have contributed to a slowdown in the economy.
A recent FTI survey revealed that the industrial confidence index for September dropped to 87.1, down from 87.7 in August, reflecting the strain caused by the floods and other challenges, such as weak domestic purchasing power, high household debt, and a slowdown in sales of durable goods like cars and motorcycles.
Nava also noted that household debt, coupled with tighter credit approval from financial institutions, has delayed government investment projects, affecting the sales of construction materials. Furthermore, the dumping of Chinese goods and the rapid appreciation of the baht have added pressure on Thailand’s manufacturing sector and exports.
Despite these challenges, the government’s 2024 economic stimulus program has helped spur domestic consumption, particularly in consumer goods, and the tourism sector continues to be a key driver of economic growth.
Nava urged the government to develop a real-time disaster warning system and strengthen cooperation with neighboring countries to address agricultural practices that threaten upstream forests, increasing the risk of flash floods and landslides. (NNT)
