The irony will not be lost on anyone. In the short term, consumption and tourism are suffering, food inflation is proving hard to master, and the economy as a whole is slowing. But in the long term, it is Thailand’s foreign direct investment that could be damaged most by the worst floods in half a century.
This year, though, had seen a surge, perhaps lured by pre-election promises to spend more on roads, bridges and drains. Net FDI applications in the first seven months were Bt205bn ($6.7bn), double the tally of a year earlier. About half came from Japan, easily the largest investor by existing FDI stock.
Infrastructures are one of the most important factors attracting or deterring FDIs