Thai Q3 GDP up 1.2%, tops forecast

Exports fell 3 per cent in the third quarter from a year earlier as global demand for Asian goods deteriorated, the agency said.

Manufacturing slumped 10.2 per cent from a year before, even as factories restored more capacity after the floods. Industrial goods account for about 65 per cent of exports.

Like in many Southeast Asian nations, strong domestic demand and tourism have helped shore up Thailand's economy even as exports and industrial output slumped.

After a strong start to the year, growth across Southeast Asia has cooled in response to prolonged weakness in demand in Europe and the United States, and a slowdown in China. Still, regional economies have remained relatively more resilient than most developed countries and continue to attract solid foreign investment.

Annual growth in Indonesia in the third quarter, year-on-year, as exports slowed, but it was still 6.2 per cent. In April-June, growth was 6.4 per cent.

For Thailand, the NESDB revised its forecast for 2012 economic growth to 5.5 per cent, compared with its previous 5.5-6.0 per cent range. Due to the floods, growth in 2011 was only 0.1 per cent.

More easing ahead?

In a bid to spur flagging growth, Thailand's central bank's monetary policy committee (MPC) cut the benchmark interest rate by a quarter of a point to 2.75 per cent on October 17. At the same time, the central bank cut its GDP

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