Thai Economy Grew 1.2% Last Quarter

Thailand’s economy strengthened in the fourth quarter on exports and consumer spending, supporting the central bank’s case to raise borrowing costs further.

Keywords: Thailand, GDP, Economy, Bank of Thailand, Minimum Wage

Gross domestic product rose 1.2 percent from the previous three months, the National Economic and Social Development Board said in Bangkok today. That compared with a revised 0.3 percent decline in the third quarter, which reflected a mid-2010 slump stemming from political unrest and flooding, and the 0.9 percent median estimate in a Bloomberg News survey of 10 economists.

The Bank of Thailand is poised to extend interest-rate increases after saying inflation is a threat, as counterparts from Indonesia to China also strive to damp jumps in the cost of living. Prime Minister Abhisit Vejjajiva has raised the minimum wage and will boost civil service pay, which may push up prices ahead of an election he plans to hold by the end of June.