Thai Floods Sap Confidence as 2011 GDP Growth Forecast Slashed

Thai economic forecasters said floods that have swamped factories and displaced millions over the past month may crimp gross domestic product growth this year to as little as 0.5 percent if all of Bangkok is inundated.

Thailand’s consumer confidence dropped for a third straight month in October, slumping to the lowest level in a decade, the University of the Thai Chamber of Commerce said today. The economy may grow between 0.5 percent and 1.5 percent this year if floods reach all of Bangkok’s 50 districts, according to economist Thanavath Phonvichai.