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Thailand economy boosted by manufacturing

Political instability still threatens economic recovery, analysts say

Thailand's economy has grown for a second straight quarter, boosted by a strong recovery in the country's manufacturing sector.

South-east Asia's second largest economy grew by 1.3% between July and September from the previous quarter, official figures showed.

However, the rate of growth was less than economists had predicted.

Thailand's economy was hit hard by the global downturn as well as by political unrest at the end of 2008.

Manufacturing grew by 2.6% in the quarter, the figures from the National Economic and Social Development Board (NESDB) showed.

The board said it expected the recovery to continue. "The economy in the fourth quarter should be positive, boosted by improved exports, tourism, consumption and government spending," it said.

Analysts confirmed the more positive outlook, but warned that the political situation could still derail the recovery.

"The economic recovery in Thailand is taking shape, given the fiscal stimulus and easing of monetary policy," said Usara Wilaipich at Standard Chartered.

"Looking forward, the outlook remains uncertain, given concerns about the ongoing political instability."

-- BBC 2009/11/25

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