Catastrophic floods cut growth in one of Asia’s fastest growing economies in both October and November – according to government reports today.  The country’s industrial ministry office reported that industrial output in Thailand plummeted by a whopping 48.6% in the month of November – making it the second month in a row the index has declined by double digits.  October’s reading was only slightly better – although overwhelmingly negative -, showing a drop of 30.1%.

The almost 50% decline beat estimates of a 26% fall for the month and ensures that year end growth for Thailand won’t keep pace with what was seen in the beginning of the year.  Earlier 2011 estimates pointed towards a 3.9% pace of growth in Thailand.

Although figures are downright depressing at the moment, government figures point towards a rebound in manufacturing and export sectors as the waters recede and factories resume production capacity.  Current forecasts are for a positive rebound – lessening the decline to about 9-10% in output.

Unfortunately, the news prompted some selling of the Thai Baht against the US dollar, currently trading at 31.56 – down 0.44% on the day.