Though having caused economic damage in six southern provinces, the devastating tsunami will not affect this year's economic growth, said the Thai government's think-tank National Economic and Social Development Board (NESDB).
The NESDB estimated the deadly tidal waves have caused about 30- 35 billion baht (about 750-US$875 million) in damages and would stunt the growth of Thailand's gross domestic product by 0. 35-0.4 percent.
However, the tsunami would not affect economic growth forecasts set earlier at between 5.5 percent and 6.5 percent for 2005, the NESDB secretary-general Ampon Kittiampon was quoted by Friday's Bangkok Post as saying.
He said the government spending on rehabilitation would alleviate the negative effects and boost the economy by 0.15 percent.
"Total estimated public and private sector reconstruction spending, at around 35-40 billion baht (875 million-US$1 billion), will be much more than the projected losses, so it could even spur the economy a bit higher," he said.
Impact of the tsunami on the overall economy would be slight as the gross domestic product of the six affected provinces accounted for only 2.7 percent of the country GDP, he said.
Local tourism sector, however, is expected to feel the impact of the disaster.
The tsunami, caused more than 5,000 deaths and around 4,000 missing, hit the kingdom's six coastal provinces, including three hot spots among world vacationers, namely Phuket, Phangnga and Krabi.
NESDB estimated that foreign arrivals to the affected areas in the first quarter would fall by 40 percent and by 30 percent in the second quarter, while local tourist visits could drop 55 percent during the first quarter.
For the next three months at least, as many as 25,000 workers in tourism-related businesses such as hotels, restaurants and travel agencies are expected to be laid off.
The Thai government and state banks have pledged hefty funds and loans to rehabilitate the region's business and are working out detailed plans.