Bt755bn needed for rebuilding: WB
Thailand will need as much as Bt755 billion to finance the rehabilitation efforts, to create a stronger and more resilient economy, according to the World Bank.
Following the development bank's flood damage assessment, Kirida Bhaopichitr, the bank'senior economist for Thailand said at the press conference on Nov 28 that public spending could reach Bt235 billion during fiscal years 2012-14. She noted that there is a room for government borrowing.
Meanwhile, the private sector will have to spend Bt510.1 billion for the rehabilitation.
The World Bank estimates that total damages from the severe flood would total Bt1.36 trillion. The private sector suffers the most, witnessing 94 per cent of total damage.
Due to the huge loss estimates, this year's gross domestic product growth will be cut from 3.6 per cent to 2.4 per cent. The economy will expand 4 per cent next year, though, against previous forecast of 3.7 per cent. The World Bank shares the opinion with most economists that reconstruction works would boost the Thai economy next year.
According to Annette Dixon, country director, all the figures are preliminary.
