Economic toll from flooding in Thailand estimated at THB242 billion
The severe flooding that has gripped much of northern and northeastern Thailand is taking a heavy toll on the country's economy, with the Thai Chamber of Commerce estimating damages at over 242 billion baht.
As climate change intensifies, experts warn that the long-term economic impact could be even more serious.
The flooding, exacerbated by the El Niño and La Niña weather patterns, has disrupted agriculture, fisheries, livestock, and business sectors across the affected regions. The chamber has identified Chiang Rai, Phayao, Sukhothai, Nong Khai, and Nakhon Phanom as the provinces hit hardest by the floods.
Cost breakdown by province:
- Chiang Rai - 6.412 billion baht
- Phayao - 2.689 billion baht
- Sukhothai - 2.265 billion baht
- Nong Khai - 2.030 billion baht
- Nakhon Phanom - 1.576 billion baht
Sanan Angubolkul, chairman of the chamber, expressed deep concern about the potential for further damage, especially given the ongoing risk of additional flooding in many areas. He urged the government to develop a comprehensive plan to mitigate the impact of future water surges, particularly in the Central region and Bangkok.
"Flooding is a recurring natural disaster in Thailand, but the frequency and severity of these events have increased due to climate change," said Angubolkul. "The agricultural sector, a crucial driver of our economy, is particularly vulnerable to these disruptions."
Ath Pisavanich, an international economics expert, emphasised the human-caused nature of climate change and its devastating consequences. He noted that severe flooding events are occurring worldwide, from Europe to Africa, as a direct result of global warming.
"We are seeing a significant acceleration of climate change, and the impacts are becoming more severe," said Ath. "The Paris Agreement goal of limiting global temperature rise to 1.5 degrees Celsius is becoming increasingly challenging."
Thailand's commitment to achieving net-zero greenhouse gas emissions by 2065 is a crucial step in addressing the climate crisis. However, the country faces growing pressure to accelerate its efforts to keep pace with other nations, such as Vietnam, which has set a more ambitious target of 2030.
Wisit Limluecha, vice chairman of the chamber, warned that the economic impact of the floods could continue to rise if the situation does not improve. He estimated potential damage of up to 50 billion baht, underscoring the urgent need for effective flood mitigation measures.
Krungsri Research has identified several regions at high risk of flooding, including the North, Central, and the lower North. The research firm estimates that the floods could cause property damage of 3.1 billion baht and agricultural losses of 43.4 billion baht.
