The FINANCIAL — The Bank of Thailand said the economic contraction in the fourth quarter was worse than it had expected while the marginal gross domestic product growth of 0.1% for the whole of 2011 also fell short of the bank's expectations, Assistant Governor Paiboon Kittisrikangwan said Monday.
GDP shrank 10.7% in the October-December period from a quarter earlier while it contracted 9.0% in the fourth quarter from a year earlier, compared with a revised 0.8% on-quarter growth and a revised 3.7% on-year growth in the third quarter, according to data released Monday by the National Economic and Social Development Board, the government's economic planning agency.
According to London Stock Exchange, the central bank had projected an on-quarter contraction of 7.4% in the fourth quarter of last year and an on-year contraction of 5.2%. It had forecast 2011 GDP growth of 1.0%.
Paiboon reiterated that the central bank expects full recovery of the manufacturing sector to take place in the third quarter of this year.