Thai economy may face 36 billion baht hit from extreme climate

Extreme climate conditions, including drought and floods, may doubtlessly inflict a 36 billion baht blow to Thailand‘s financial system this 12 months, warns the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB). Simple as ABC , particularly, is a big concern as it might severely have an effect on the agricultural and manufacturing sectors, additional hindering the country’s already sluggish exports.
“Manufacturers are worried about drought as a result of it could cut back production capability and affect exports,” stated Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), which is a half of the JSCCIB.
Commerce Ministry knowledge reveals that Thai exports decreased by 5.2% year-on-year to US$92 billion within the first four months of 2023, while imports fell by 2.2% to US$96.5 billion, leading to a trade deficit of US$4.51 billion.
The JSCCIB submitted a proposal to the Prime Minister on May 31, in search of collaboration with the government to sort out the drought and mitigate its extreme impacts. The business sector urges authorities to devise mid-term and long-term solutions to ensure funding tasks, significantly those in the Eastern Economic Corridor (EEC), can continue operating. The EEC area is home to 12 S-curve industries expected to drive Thailand’s economic system.
Kriengkrai said that businesses have developed risk administration plans to deal with drought and flood points. In the manufacturing sector, corporations are implementing 3R measures – reducing, reusing, and recycling water – to ensure enough water supply for production processes. Additionally, firms are selling the adoption of innovative technologies among farmers to help them preserve water resources..

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