Flooding has little impacts on economic growth rate

Impacts from the current and recent flooding in several parts of the country, especially in the Northeast, will not affect economic growth rate this year which is forecast to grow 3.6 percent, said Mr Krisda Jinavijarana, director of Fiscal Policy Office, over the weekend.

He attributed the minor impact to economic growth rate from flooding to the fact that flood water had receded quickly in most areas and that the government had stepped in quickly to help flood victims by introducing several programmes such as debt suspension, interest rate cut and 3,000 baht per head handouts for affected farmers and house repair expenses.

Mr Chiraphan Asavathanakul, president of the Non-Life Insurance Association, said the association was in the process of assessing damages to cars, houses and buildings and rice farmland which was insured for the 2516-17 crop year.

Initially, he said as many as 660 cars were damaged by floodwater and compensation would be claimed by the car-owners from insurance firms. But as far as rice farmland is concerned, he said damage was minimal because flooding did not last long.

About 10 million rai of rice farmland were insured, said Mr Chiraphan, adding that the association would try to convince farmers and house-owners of the merits of insuring their farmland in a way that insurance coverage would reduce their burden in shouldering expenses and that insurance premium was not as expensive as feared.