RHB | Thailand | Impact Of Drought To Hit Farmers Most, Other Sectors Remain Largely Insulated For The Time Being

Economic Research	18 April 2016
Thailand
Economic Highlights
Impact Of Drought To Hit Farmers Most, Other Sectors Remain Largely Insulated For The Time Being A prolonged El-Nino induced dry spell and past mismanagement of water resources have left Thailand on the brink of its worst drought in two decades. Reservoirs are holding only 15% level of usable water on average as of 10 April. At this level, and with the government’s stated rate of dispersion, water supply is estimated to be sufficient to last another 120 days, with priority given to the industrial and tourism sectors, which are likely to suffer negligible impact from the water shortages, as well as for human consumption and ecosystem protection purposes (to prevent saltwater intrusion). Meanwhile, the damage to the agricultural sector will again be pronounced, especially in the rice farming community. However, we do not see a big hit to consumer spending growth as the government has been pro-active in providing fiscal support, while, at the same time, a pick-up in construction activities have provided jobs for struggling farmers. Economist:  Ng Kee Chou  | +603 9280 2179
To access our recent reports please click on the links below: 04 Apr: Thailand’s CPI Remained Negative In March 01 Apr: Broad Money Supply Slows Despite Surge In Government Spending 30 Mar: Thailand’s Auto And E&E Sectors Drove February MPI Improvement 28 Mar: February Exports Artificially Inflated By Military Copters 24 Mar: Bank Of Thailand Leaves Policy Rate Unchanged 02 Mar: CPI Remained Negative; Indicators Suggest Pick-up In Consumer Spending Imminent 01 Mar: Broad Money And Loan Growth Continued To Ease In Janurary