Thai economic growth slumps at end of 2013

Thailand's economic growth slowed significantly in the final quarter of last year, and the state planning agency cut its forecast for this year because of political unrest that could prevent the formation of a fully functioning government for months.

Southeast Asia's second-biggest economy, after Indonesia, grew a seasonally adjusted 0.6 per cent in the quarter from the previous three months. That matched a forecast from economists in a poll but was well below the previous quarter's 1.3 per cent pace.

The economy also expanded 0.6 per cent from the final quarter of 2012, compared with the poll forecast of 0.4 per cent and the previous quarter's 2.7 per cent.

For the full year, the agency said growth was 2.9 per cent, far below the 6.5 per cent expansion in 2012, when Thailand was rebounding from devastating floods in the preceding year.

The planning agency slashed its growth estimate for this year to between 3 per cent and 4 per cent from the 4 to 5 per cent it forecast in November, when anti-government protests began in the capital of Bangkok.

The government tried to end the crisis by moving in December to hold a snap election. That took place on February 2 but was disrupted, meaning there is no quorum in parliament to form a government, so a caretaker administration remains in place, with only limited spending and borrowing powers.