Retail in Asia

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Thai 1Q GDP surges, economy bouncing back from floods

Thailand’s economy expanded a robust 11.0 percent in the first quarter from the previous three months, rebounding from last year’s severe flooding, and strong full-year growth is expected due to a jump in consumption and investment after the disaster.

The January-March expansion – the highest since Thailand started measuring quarterly gross domestic product in 1993 – and external risks from the euro zone’s problems reinforce the view that the central bank will leave interest rates steady at 3 percent on 13 June and maybe for the rest of the year.

"Looking forward, we believe that risks to growth will shift from capacity constraints to weak external demand due to the European debt crisis," said Usara Wilaipich at Standard Chartered Bank in Bangkok. She saw no rate change this year.