Thai economy soars in Q4 on post-flood recovery

Thailand's economy enjoyed record growth in the fourth quarter of 2012 as industry recovered from the impact of the kingdom's worst floods in decades, official data showed Monday.

Gross domestic product (GDP) soared 18.9 per cent in the three months through December from the year-earlier period according to the government's National Economic and Social Development Board (NESDB).

GDP rose 3.6 per cent compared with the previous quarter.

Strong domestic and international demand helped to drive the strong performance, said NESDB secretary general Arkhom Termpittayapaisith.

"There has been a full recovery after the severe floods," he told a press conference.

The Thai economy suffered a double-digit contraction in the wake of the months-long floods, which deluged vast swathes of the country in 2011, killing hundreds of people and causing widespread damage to factories.

At their height the floodwaters affected 65 of the country's 77 provinces, swamping hundreds of thousands of homes and disrupting global supply chains.

The NESDB forecasts economic growth of 4.5-5.0 per cent for 2013, after an expansion of 6.4 per cent in 2012.

"An economic recovery in the United States, China and Europe will be good for Thai exports," Arkhom said, adding that an increase in the kingdom's minimum wage would also boost domestic demand.

Rising car sales and production helped to lift GDP in the fourth quarter due to a government scheme to encourage new vehicle purchases.