Thailand’s economy has grown by an impressive 11 per cent in the first quarter of 2012, dumbfounding the international community.
The massive growth is surprising given that last year the country experienced one of its worst floods in recent times, brought on by three months of heavy monsoon rain.
It is also all the more amazing given that in the previous quarter the economy had shrunk by 8.9 per cent.
Thailand’s National Economic and Social Development Board (NESDB) predicts that for the rest of the year it will experience growth of 5.6 to 6.5.
“Today’s data underscored expectations that the economy’s recovery from last year’s floods is on track,” Radhika Rao from Forecast in Singapore told the BBC.
“Acceleration in investment spending due to reconstruction efforts and a sharp jump in inventories have lifted headline growth.”
This will certainly boost the confidence of people considering moving overseas to the south-east Asian country.
However, there is need for some caution given how dependent Thailand is on exports. The outcome of the current crisis in Greece, therefore, will be keenly observed.