Thailand's economy grew 12 percent year-on-year in the first quarter, but prospects for all of 2010 have been dampened by political turmoil in April and May, a government think tank said Monday.
“The economy grew 12 percent in the first quarter, the highest rate of growth in the past 15 years,” National Economic and Social Development Board Secretary General Amporn Kittiamporn said.
That growth rate lagged in Asia only behind that of Singapore and Taiwan, he said.
Like Singapore and Taiwan, the Thai economy is driven primarily by exports, which grew an estimated 32 percent in the first three months of 2010 from the same period a year earlier to 44.3 billion dollars. Exports account for more than 65 percent of Thailand's gross domestic product (GDP).
Private-sector investments also rose 22.8 percent during the quarter.
While the year started out strongly for Thailand, prospects for the full year have been dampened by political instability and violence in Bangkok in April and May, brought about by an anti-government demonstration, in which protesters seized the heart of the capital's commercial district.
On Wednesday, the government dispersed them from their protest site, which they had occupied since April 3. The crackdown sparked rioting, and 36 building were set alight.
Amporn said the Thai economy could have grown 6 to 7 percent this year without the political chaos in Bangkok, but now his board has lowered its forecast to 3.5- to 4.5-per-cent GDP growth in 2010.
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