Kiatnakin Phatra Bank predicts a severe and prolonged impact that may extend into the next year, while the Thai Meteorological Department sees similarities with the El Nino events of 2015 and 2019.
Thailand is facing a severe drought, which is negatively affecting the country’s gross domestic product (GDP), leading to a contraction of 6.5%.
The warning signs from the drought and the onset of El Nino are becoming increasingly concerning. The rising trend of hot spells and the continuous low rainfall throughout the country are causing a reduction in water levels in various reservoirs. Should the worsen, the impact on Thailand’s agricultural sector, as well as the industrial and service sectors heavily reliant on water, could be significant.
Siam Commercial Bank (SCB) Economic Intelligence Centre also expressed pessimism, saying that the current El Nino system is considered to be in…
