World Bank concerned over impact of drought on Thai economy

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BANGKOK, 16 July 2015 – The World Bank has expressed concern over the impact of severe drought on Thailand’s growth prospects in the second half of this year.

World Bank senior economist for Thailand, Kirida Bhaopichitr, said the drought crisis could bring short-term risk for Thailand’s economy as it hampers domestic spending. The government is urged to devise extra measures to assist farmers who have been hit by the drought.

The World Bank projects the kingdom’s GDP growth this year at 3.5 per cent if exports grow by 0.5 per cent.

Kbank meanwhile forecast that the Thai economy will expand by 2.2-2.8 percent this year. The tourism sector is growing at a steady pace, which will bolster confidence in the private sector. The bank also cautioned the government to pay special attention to the agricultural sector as consumers in the sector are hardest hit by the dry season.