On Monday, the latest data released by the government of Thailand showed that the country’s economy suffered greatly in the fourth quarter of 2011, as widespread flooding forced manufacturers to halt production.

The National Economic and Social Development Board (NESDB) latest report showed that the Thailand’s GDP (Gross domestic product) expanded by 9 percent in the final three months as compared to the same period of 2010.

Government official, Apichai Thamsermsukh said that it was the sharpest decline in a single quarter since comparable records began in 1993, adding that the Asian financial crisis of 1997-98 saw smaller quarterly shrinks but over a longer time period and this is an extraordinary decrease caused by the manufacturing sector.

The media reported that the disastrous flood last year killed more than 700 people and covered two-thirds of the country.

Thai’s leading research firm, Kasikorn Research Centre, said that the figures of the last three months of 2011 reflected a worse-than-expected impact from the floods and the on the whole, the picture going forward will pick up.

In start of this year, the NESDB raised this year’s forecast, saying that it expects a rise in both public and private spending.

The Government of Thailand announced that the country will spend $11 billion on infrastructure after the 2011 disastrous floods.

In January, the central bank of the country also cut its benchmark interest rate for the second time in three months.

The Commerce ministry said that it was targeting a 15 percent increase in exports in 2012, as compared to 17.2 percent increase in 2011.

Economist, Kampon Adireksombat at Tisco Securities Co, said that exports will continue to improve as plants resume production, and still, they need to accept the truth that the growth this year cannot be as high as two years ago because of poor world economy and global demand.

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