Kasikorn Research Center has assessed the economic impact of the flooding in Songkhla and several southern provinces, estimating losses of no less than 25 billion baht within a one-month period. Additional complex asset damages are expected beyond those affecting households, including impacts on the government, financial institutions, and business partners.
Kewalin Wangpichayasuk, Deputy Managing Director of Kasikorn Research Center (KResearch), stated that the severe flooding in Songkhla—which has persisted since November 21—and in other southern provinces has affected around 800,000 households and covered more than 400,000 rai of land. The situation has yet to improve, and going forward, there remains a risk of continued heavy rainfall and runoff. KResearch evaluates the impact in two parts as follows:
1. Immediate impact from the disruption of economic activity:
The initial economic loss is estimated to be no less than 25 billion baht within one month, or about 0.13% of Thailand’s nominal GDP. This estimate assumes severe conditions during the first 10–15 days, followed by gradual easing in the next 10–15 days. Songkhla, which experienced widespread flooding, accounts for the largest share of the estimated impact.
The disruption primarily affects economic activities in the service sector—such as accommodation, restaurants, retail, and transportation—as well as industrial production, including agriculture and food processing, which account for 56% and 18% of Songkhla’s economy respectively. Basic utilities such as electricity and water supply were also interrupted (around 3%).
The flooding occurred during the year-end period, when economic activity typically increases due to seasonal tourism. Moreover, Thailand is set to host the SEA Games from December 9–20, 2025, with Songkhla being one of the venues for several sports competitions.
Additional impacts are expected in agriculture across Songkhla and other provinces, particularly rubber and oil palm plantations, as well as aquaculture and fisheries.
2. Asset damage:
This impact is more complex, as losses may be recognized gradually across multiple sectors beyond households, including the government, financial institutions, and business partners.
Once the flooding subsides, affected individuals will face further consequences related to the repair or replacement of damaged assets, such as houses, vehicles, and personal belongings. The timeline and severity of this impact will depend on various factors, including household savings and earning capacity, economic conditions, support from creditors and business partners—including financial institutions—and government measures.