Thai economy could face 36 billion baht hit from extreme weather

Extreme weather conditions, including drought and floods, could potentially inflict 36 billion baht blow to Thailand‘s economy this year, warns the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB). Drought, in particular, is a significant concern as it may severely affect the agricultural and manufacturing sectors, further hindering the country’s already sluggish exports.

“Manufacturers are worried about drought because it can reduce production capacity and affect exports,” said Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), which is part of the JSCCIB.

Commerce Ministry data reveals that Thai exports decreased by 5.2% year-on-year to US$92 billion in the first four months of 2023, while imports fell by 2.2% to US$96.5 billion, resulting in a trade deficit of US$4.51 billion.

The JSCCIB submitted a proposal…