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You are here:  Home / Business News / Disaster to shave 0.3 percent off Thai GDP

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Disaster to shave 0.3 percent off Thai GDP

Published: Dec. 31, 2004 at 3:41 AM
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BANGKOK, Dec. 31 (UPI) -- Thailand's gross domestic product could decline by 0.3 percentage points as a result of the Dec. 26 tsunamis.

As the economic impact on ruined major tourist destinations becomes clear, economists are scaling down their forecast, Business Day reported Friday.

"In the worst-case scenario, should the government take no action at all, GDP will likely drop 0.3 (percentage point) next year," said Naris Chayasutr, director general of the Finance Ministry's fiscal economy office. "But I believe the government will implement a number of measures to stimulate new investment and stimulate the economy in the affected areas," he added.

The economies of the six affected provinces -- Phuket, Phangnga, Krabi, Trang, Ranong and Satun -- account for about 2.7 percent of the national economy, he said.

Thailand may be able to limit lost tourism earnings to less than its previous estimate of $768 million if the government speeds up plans to rebuild roads, buildings, phone systems and utilities damaged by tsunamis.

The government is now trying to promote other tourist destinations that were not affected by the catastrophe.

The death toll in Thailand has risen to more than 4,500 as rescuers discovered more bodies in Phangnga province, north of Phuket.



© 2004 United Press International, Inc. All Rights Reserved.
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