BANGKOK, 20 October 2011 – The Bank of Thailand has advised the country to brace for a sharp drop in GDP thanks to the ongoing flood crisis.
The Bank of Thailand Governor Prasarn Trairatvorakul predicted that the floods would cost the production sector around 100 billion THB in the fourth quarter this year and the first quarter next year. The speculated amount is exclusive of damage to the public consumption, property, and infrastructure.
The central bank, which earlier estimated the 2011 GDP at 4.1 percent, warned that the extensive economic damage caused by floods could slash this year’s GDP by at least one percent, meaning the GDP would drop to three percent or even lower.
Mr. Prasan also said the BOT was keeping a close watch on the situation and would hold an urgent meeting to come up with proper financial and interest policies if the country’s economy was in any way at risk.