BANGKOK, June 25 (TNA) – Prevailing severe drought in Thailand has pushed the projected gross domestic product (GDP) downward by 0.5 per cent from 3.5 per cent forecast earlier, said Finance Minister Sommai Pasi on Thursday.
The El Nino weather phenomenon delayed and reduced rainfall in the country and that reserved water was low in reservoirs which was considered worst in Thailand since 1997 plus sluggish global economy had affected Thailand’s GDP which is now projected at 3 per cent this year, said Mr. Sommai.
However, the minister said, if the government’s assistance measures to solve the current drought are successful, the GDP would not decline much. He added that related economic agencies are accelerating on assisting agriculturists which include the spending of the 2016 fiscal government budget.
Mr. Sommai admitted that concerned government agencies were discussing to find extra measures to assist agriculturists because encouraging them to grow crops that use little water would not help much.
The state-run Bank for Agricultural and Agricultural Cooperatives has been asked to offer a six-month grace period on principal and interest to agriculturists who had borrowed money from the bank, Mr. Sommai added. (TNA)
