BANGKOK, Thailand – Flooding across several regions of Thailand is estimated to reduce gross domestic product by 0.03% to 0.1%, with potential for greater impact if conditions persist, a central bank official said.
Chayawadee Chai-anant, Assistant Governor and Spokesperson for the Bank of Thailand (BOT), said final loss estimates cannot yet be concluded as the water situation in Bangkok and upcountry provinces remains ongoing and requires close monitoring.
The central bank expressed concern that flood damage will increase debt burdens and erode repayment capacity among households and small and medium-sized enterprises (SMEs), which are already vulnerable. Expense pressures for repairs following receding waters are also expected to weigh on household purchasing power. “The central bank has instructed financial institutions to urgently assist affected borrowers,” Chayawadee said, adding that details of financial relief measures have been compiled on the BOT website.
According to BOT’s sectoral assessment, the services sector has faced the heaviest impact due to disruptions in transportation, product distribution, wholesale and retail sales, and inventory damage. Construction activities in affected zones have been temporarily halted.
While the impact on tourism remains limited for now, the central bank warned that higher water levels or a prolonged duration could damage overall sentiment, public confidence, and the image of Thailand’s tourism sector. (TNA)
