Drought could affect Thailand’s GDP

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Drought situation this year has occurred faster than previous years resulting in a drop of water levels stored in dams throughout the country.BANGKOK (TNA) – The prolonged drought may affect Thai economy between 17 to19 billion baht, or around 0.10 – 0.11 per cent of Gross Domestic Product (GDP) in 2020, according to an estimate by Kasikorn Research Center (KResearch).

KResearch said it is still monitoring the drought crisis, especially this March and April, while the worrisome situation could last after the end of this summer season.

General economy of the country would then become worsen, it said.

Drought situation during the first four months this year which has occurred faster than previous years has resulted in a drop of water levels stored in dams throughout the country by 33.1 per cent in almost every region and showed signs of water crisis, worse than in 2015, KResearch said.

Agricultural products including rice, tapioca and sugarcane which are key exports of Thailand are not spared from the drought and their prices may go up in short-term. The income of their growers between this January to April could fall between 0.5 – 1 per cent, it said.

Besides, the country’s export could decline due to a lack of production while demand in the world market has also decreased, it added. (TNA)