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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Australia China India Indonesia Japan Malaysia Philippines Thailand Vietnam Search Search: Thailand's economy shrinks 4.3 percent in 4Q By AMBIKA AHUJA,Associated Press Writer AP - 2 hours 35 minutes ago BANGKOK - Thailand's economy shrank for the first time in nearly a decade in the fourth quarter as the global slowdown squelched exports and political unrest hit tourism, the government said Monday. ADVERTISEMENT Gross domestic product contracted a bigger-than-expected 4.3 percent from a year earlier in the last three months of 2008, according to the National Economic & Social Development Board. The economy, Southeast Asia's second largest, grew 2.6 percent in 2008. The last time Thailand's economy shrank was in the first quarter of 1999. The agency said the economy may contract as much as 1 percent in 2009. It previously forecast growth of as much as 4 percent for this year. "There are many risk factors on the downside for the economy," said Usara Wilaipich, a senior economist at Standard Chartered Bank. "Growth will likely be negative in the first half and it will likely stabilize in the second half as fiscal stimulus takes effect. But it also depends on global factors and how fast the U.S. economy recovers," she said. Thailand, like its export-dependent neighbors, has been battered by the slump in global demand. Exports posted their steepest fall in 12 years in January as demand for the country's cars, hard drives and electrical goods evaporated. Exports account for 65 of the country's GDP. Labor Minister Phaithoon Kaeothong last week said that Thailand's manufacturers may cut as many as 100,000 jobs this year due to the slump in exports. Tourism, which makes up about 6 percent of the economy, was hard hit by anti-government protesters shutting down Bangkok's two main airports for a week just as the high season began late last year. Prime Minister Abhisit Vejjajiva's government has introduced measures including cash handouts to the poor and long-term infrastructure projects to stimulate the economy. Earlier this month, Thailand's Parliament approved a 116.7 billion-baht ($3.3 billion) package which will take effect next month to stimulate domestic demand and create jobs. The funds will be used to support social security, tourism, free education and training programs, create jobs and provide low-interest loans to farmers. A portion of the funds was also doled out as a one-off handout to several millions of low-income employees and government officials. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: Asia Pacific Taliban free kidnapped Pakistani officialReuters - 1 hour 17 minutes ago Thai royal insult no publicity stunt, says Australian writerAFP - 1 hour 25 minutes ago North Korea reportedly deploys new missileReuters - 1 hour 39 minutes ago Australia likely to cut immigration: ministerAFP - 1 hour 45 minutes ago Sri Lanka rejects Tamil Tiger ceasefire dealAFP - 2 hours 14 minutes ago Most Popular – Asia Pacific Viewed Terminally ill British TV star marries as cameras roll Huge gamma-ray blast spotted in space Obama aims to cut deficit in half Seductive chemicals hidden in sloppy kisses Terminally ill British TV star marries as cameras roll View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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