The Thai economy greatly exceeded expectations for the fourth quarter of 2012, recording an 18.9% increase over the final 3 months of the year compared to the same time frame in 2011. Estimates for the final quarter of 2012 were pegged at 15.3% before the National Economic and Social Development Board released the favorable numbers. The increase marks the largest on record since 1993 when data was first compiled.
The sharp performance in the fourth quarter also contrasts strongly with the third quarter of 2012, when the economy grew by 3.1%.
According to coverage from Bloomberg, the Thai economy is now believed to have grown by 6.4% overall in 2012, up from a meager 0.1% in 2011. A number of factors are attributed to the solid economic performance including: a solid regional and international environment, aggressive government spending programs and strong consumer demand at home. Despite the adverse economic impact on the manufacturing sector resulting from widespread flooding in 2011, exports are forecast to grow by 11% in 2012 as well.
The news is likely to give a further boost to the incumbent Pheu Thai government and PM Yingluck Shinawatra.
