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Impending drought poses significant threat to Thai export sector
Photo: Cory Wright/ The Diplomat The Thai economy braces for another challenge as impending drought threatens its critical export sector, following last month’s extensive flooding. Despite an improvement in exports in August, marking a recovery from an 11 month decline, the impending drought could significantly impact food manufacturing and shipments.
The Federation of Thai Industries (FTI) highlighted concerns over the potential repercussions of water shortages on exports, purchasing power, GDP growth, and food security. The local agricultural sector, reliant on water supplies, could see reduced harvests, impacting food manufacturers and exporters dependent on farm produce.
Kriengkrai Thiennukul, FTI’s chairman, emphasised the importance of the government’s preparedness and strategic response to mitigate the drought’s impact. He highlighted that “Thailand is a major…
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