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Thailand's economy shrinks 9% after flood disruptions | Thailand's economy shrinks 9% after flood disruptions |
(about 14 hours later) | |
Thailand's economy contracted sharply in the last three months of 2011 after some of the worst flooding on record disrupted manufacturing. | Thailand's economy contracted sharply in the last three months of 2011 after some of the worst flooding on record disrupted manufacturing. |
Gross domestic product declined by 9% in the three months to December compared to a year earlier, the National Economic and Social Development Board (NESDB) said. | Gross domestic product declined by 9% in the three months to December compared to a year earlier, the National Economic and Social Development Board (NESDB) said. |
Compared to the previous three months, the economy contracted by 10.7%. | Compared to the previous three months, the economy contracted by 10.7%. |
The floods killed more than 700 people and affected two-thirds of the country. | |
Brighter outlook? | Brighter outlook? |
Analysts said despite the poor numbers, the future outlook was not as bleak. | Analysts said despite the poor numbers, the future outlook was not as bleak. |
"The fourth-quarter figures reflected a worse-than-expected impact from the floods. The overall picture going forward will pick up," said Pimonwan Mahujchariyawong from Kasikorn Research Centre. | "The fourth-quarter figures reflected a worse-than-expected impact from the floods. The overall picture going forward will pick up," said Pimonwan Mahujchariyawong from Kasikorn Research Centre. |
The NESDB raised its forecast for 2012, saying it expects a rise in both public and private spending. | The NESDB raised its forecast for 2012, saying it expects a rise in both public and private spending. |
Thailand's Prime Minister Yingluck Shinawatra has said the country will spend 350 billion baht ($11bn; £7bn) on infrastructure after the floods. | Thailand's Prime Minister Yingluck Shinawatra has said the country will spend 350 billion baht ($11bn; £7bn) on infrastructure after the floods. |
The NESDB said it expects the economy to expand by between 5.5 and 6.5% this year, rather than the 4.5 to 5.5% it had forecast in November. | The NESDB said it expects the economy to expand by between 5.5 and 6.5% this year, rather than the 4.5 to 5.5% it had forecast in November. |
The Bank of Thailand cut its benchmark interest rate for the second time in January. | The Bank of Thailand cut its benchmark interest rate for the second time in January. |
Export push | Export push |
Major companies that manufacture in Thailand saw exports hit when industrial estates flooded, including Honda, Sony and Western Digital. | Major companies that manufacture in Thailand saw exports hit when industrial estates flooded, including Honda, Sony and Western Digital. |
The manufacturing index fell for the fourth month in a row and exports fell for a second month in December. | The manufacturing index fell for the fourth month in a row and exports fell for a second month in December. |
Honda, Toshiba and Fujitsu have all cut their profit forecasts because of disruption to production lines. | Honda, Toshiba and Fujitsu have all cut their profit forecasts because of disruption to production lines. |
Thailand's Ministry of Commerce said it was targeting a 15% increase in exports this year, compared to 17.2% rise in 2011. | Thailand's Ministry of Commerce said it was targeting a 15% increase in exports this year, compared to 17.2% rise in 2011. |
However, analysts said slackening global demand would also weigh on exports. | However, analysts said slackening global demand would also weigh on exports. |