Drought Problem Could Affect Thai Economy by 0.1%, Says FPO Chief

BANGKOK, June 28 (TNA) - Severe drought which has been devastating Thailand is expected to impact the country’s economy by 0.1 percent this year, costing the country around 50 billion baht, said the Finance Ministry. Krisda Chinavicharana, director-general of the Fiscal Policy Office, said he had planned to revise this year’s economic forecast in July by considering positive factors, including tourism growth and investment during the second half of this year. Negative factors such as Thailand’s exports which declined in May for the fifth month in a row would also weigh on the forecast. Earlier, the Fiscal Policy Office projected that this year’s economy would grow by about 3.7 percent. In a separate interview, former energy minister Pichai Naripthaphan had pointed that the country’s exports in May alone contracted 5.01 percent, down for the fifth consecutive month, in contrast to projection of the current economic-related ministers which had predicted Thailand’s exports was to rebound. Pichai said he was certain exports in 2015 would suffer contraction due to several negative factors including the current severe drought which could cost the economy some 100 billion baht and would cause the gross domestic product to drop lower than 0.5 percent. Thailand’s exports this year could deteriorate further if the country continued to be punished by human trafficking problems by the Washington government and also fishing crux by European countries plus falling foreign investment, and woes in tourism business which could worsen after the U.N. International Civil Aviation Organisation red-flagged the kingdom on June 18. Other factors include the current outbreak of the Middle East Respiratory Syndrome and the slow investment by the public sector. All the while, Prime Minister General Prayut Chan-ocha had been urged to reshuffle ministers responsible for economic-related issues before the country’s economy would deteriorate and people suffer more. (TNA)