Thailand's economy has expanded around 3.3 percent in the second quarter, smashing forecasts which had puts growth at 1.7 percent.

The figure was released by the National Economic and Social Development Board (NESDB) reflects measures taken by the government to boost the economy following last year's flood and slow growth. Year-on-year growth has been of 4.2 percent, from 0.3 percent.

The government has also announced plans to invest $63.4bn on infrastructure in an attempt to prevent or mitigate the consequences of natural disasters in the future and bolster growth even further.

However, Arkhom Termittayapaisith, secretary general at the NESDB has also announced that the forecast for export growth this year has been reviewed from 15.1 percent to only 7.3 percent amid concerns that the European slowdown will affect demand. As a result the annual overall growth forecast has been revised down from a range of 5.5 to 6.5 percent to 5.5. to 6 percent, despite the positive second quarter figures.

Malaysia and Indonesia have also reported better than expected growth in the second quarter, bolstered by strong domestic demand.