Drought hits Thailand’s economy
A drought in Thailand could affect economic growth this year,
Prime Minister Thaksin Shinawatra has said.
“It will have an impact on GDP growth.
The drought is extremely severe this
year. If the May rains arrive late we could see greater damage,” he said.
The drought is hitting most of the country – with water in many dams
declining significantly.
The drought hit fourth quarter economic results by significantly affecting
output in the agricultural sector.
The prime minister said the government remained hopeful the economy would
grow by 6.5% in 2005 after 6.1% growth in 2004.
The country cut its economic growth forecast in December to account for the
effect of the tsunami, which hit six Thai tourist provinces.
Disaster zones
Hopes for a second rice-crop this year have been frustrated by the drought,
and crops have been withering in fields.
The agriculture sector, accounted for 9.2% of Thai GDP in 2004.
The National Economic and Social Development Board, a state planning agency,
said the sector would contract again in 2005, as happened last year.
The drought has hit 70 of Thailand’s 76 provinces and affected 8.3 million
people.
On Friday, 10 areas in the northern Thai province of Chiang Mai were declared
disaster zones, with emergency assistance granted to relieve the hardship of
farmers and fishermen.
As many as 6,000 new wells are being drilled in rural areas to provide
temporary relief.
Region hit
Water at hydro-electric dams has fallen close to the minimum needed to
produce electricity, government officials said.
The military is on standby to carry out cloud-seeding in an effort to
stimulate rain in the areas worst hit.
The drought is affecting other countries in south-east Asia and Cambodia has
put out a call for international assistance.
Cambodia is suffering its second year of drought, with the Mekong River water
levels dropping below normal levels, and many farmers expect to lose their
crops.
Vietnam’s eight Central Highlands provinces are suffering their worst drought
in 28 years, affecting 1 million people and causing millions of pounds worth of
crop losses.
Officials say Vietnam’s coffee industry, the second largest in the world, is
threatened as the main bean-producing region is one of the hardest hit.