Thai Q1 GDP Surprisingly Strong, Outlook Uncertain

[LaoPo]

Thai Q1 GDP surprisingly strong, outlook uncertain

By Orathai Sriring

BANGKOK (Reuters) - Thailand's economy grew at its fastest rate in 15 years in the first quarter of 2010, surprising analysts, and a state agency forecast growth of up to 4.5 percent this year, but recent riots raise questions about the outlook. Powered by a surge in exports, Southeast Asia's second-biggest economy expanded 3.8 percent in the first quarter of this year from the previous quarter, more than double the 1.8 rise expected by most economists. On an annual basis, the economy grew 12 percent, its strongest pace in 15 years.

But the data for coming quarters will reflect the toll of weeks of political violence that began in April with a deadly gun battle in Bangkok's old quarter and descended into urban warfare, riots and widespread arson attacks in May.

Nine weeks of anti-government protests that ended with a military crackdown last Wednesday have pared Thailand's growth this year by 1.5 percentage point, said Amphon Kitti-amphon, chief of the National Economic and Social Development Board.

story continues:

http://www.reuters.com/article/idUSTRE64N0...usbeforethebell