Flooding will affect economic growth

Flooding will affect economic growth

Flood crisis has dealt a sharp blow on the business sector, forcing entrepreneurs to revise their target growth.

The ongoing flooding has already hit retailers, IT, vehicle, housing as well as production sectors.

Consumption product manufacturers and retailers revealed that the floods would impact buying capacity of consumers, particularly farmers and grocers in flood-torn areas. Although instant noodles have enjoyed a sales rise, other consumption items are likely to see a slowdown since those in affected provinces will cut down on shopping.

Computer dealers meanwhile disclosed that their sales had also dropped as many outlets in flood-hit areas had delayed or cancelled their purchase orders. The dealers predict a 10-20 percent sales drop in the third quarter.

Car manufacturers are spared from the disaster thanks to the government’s tax reduction for first-time car buyers. Motorcycle manufacturers have seen a sharp drop in sales. Property developers have lowered their target sales by six to 15 percent. More than 3,000 factories in the central regions had to halt their operation temporarily due to inundation, causing more than 100 million THB in losses.

The tourism sector remains immune to the flooding. However, the Tourism Authority of Thailand revealed that the global economic woes would slow down the growth in foreign tourist arrivals.
 
BANGKOK 5 October, 2011 (NNT) – Reporter : Vipaporn Pooritanasarn
     News Date : 05 October 2011