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Flooding in Bangkok, Metropolitan Area Shakes Local Economy

Theissue30 Sep 2026 13:50 GMT+7

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Flooding in Bangkok, Metropolitan Area Shakes Local Economy

Flooding in Bangkok, the metropolitan area, and several provinces has shaken the livelihoods of local residents. Kasikorn Research Center assessed the economic impact from 25-27 Sep 2026 at 7,000–17,000 million baht, or about 0.03–0.11% of GDP, with most damage resulting from temporary economic activity losses.

Due to continuous heavy rain from 25-27 September 2026, flooding occurred in Bangkok and the metropolitan area, including Samut Prakan, Nonthaburi, and Pathum Thani, which were later declared disaster zones. Over 20 other provinces were affected, such as Sa Kaeo, Prachinburi, Ayutthaya, Chonburi, Nakhon Nayok, and Nakhon Ratchasima. Although most areas in Bangkok have gradually returned to normal, several locations still face prolonged impacts that may take at least a week to resolve if no further incidents occur.

The initial economic impact arose from temporary disruptions due to the rapid onset of flooding, leaving businesses and residents little time to prepare. Travel difficulties caused some activities to halt or slow over the weekend before special public holidays were declared and many private companies shifted to working from home.


The main effects in Bangkok and the metropolitan area affected retail, restaurants, services, transportation, and SMEs, especially businesses dependent on consumer travel and on-site services, as well as daily wage workers who may lose income when unable to commute or work.

Kasikorn Research Center initially evaluated the economic impact over approximately 3–7 days, considering lost opportunities for businesses and workers such as temporary closures of restaurants and shopping centers, delays in product and food deliveries, travel and tourism disruption, fuel stations, and health and financial services. Some impacts may be offset later since some spending was merely postponed. Additionally, September is not a peak month for foreign tourists entering Thailand, limiting tourism sector damage to some extent.

Under these assumptions, Kasikorn Research Center estimates a net preliminary economic impact of about 7,000–17,000 million baht, roughly 0.03–0.11% of GDP. Most early effects are from temporary economic activity losses rather than damage to production capacity. However, uncertainty remains high depending on the flood's duration. If flooding prolongs or spreads to factories, industrial estates, or critical transport and supply chains, economic impacts could rise significantly.

The impact does not end immediately when floodwaters recede, as households and businesses still face property damage to homes, vehicles, machinery, and equipment, along with repair and recovery costs. This may lead to more cautious spending in other areas. Effects vary by financial status and resilience, especially among groups with high debt, limited savings, or restricted credit access, who are less able to absorb losses.

Looking ahead, the increasing frequency and severity of natural disasters and extreme weather pose major structural challenges to Thailand's economy, affecting lifestyles, business operations, infrastructure, and fiscal burdens. Enhancing resilience requires multi-dimensional efforts, including water management and infrastructure, early warning systems, business continuity management, insurance mechanisms, and financial tools to distribute risks, so disaster burdens are not borne solely by households, businesses, or the government.