Thai Economy Recovering Since Last Year’s Floods

For the first time since the floods, factory output has increased in Thailand, according to a report issued by Reuters.  Government officials and many economists are predicting a gradual recovery from the severe flooding that effected Thai industrial production last year. 

Bloomberg also reports that: "[the Thai] economy unexpectedly expanded in the first quarter as factories resumed production and domestic consumption revived after last year’s floods."  According to Bloomberg, Bank of Thailand Governor Prasarn Trairatvorakul said this month the monetary authority will refrain from further rate cuts because the pace of recovery is exceeding its expectations, even as Europe's debt woes and higher oil prices pose risks to growth."

The Thai Government Public Relations Department says that:

Private investment is expected to grow by 10.3 percent, with the Government’s post-flood rehabilitation as a supporting factor. The effect of the global economic slowdown is likely to bring down Thailand’s export growth to about 9 percent. The government spending would grow by 4.5 percent.

The BBC also reports on its website that growth is rebounding in Thailand with: "Gross domestic product [growing] 11% in the first three months of the year, compared to the previous three months…"