Thailand's finance minister warned Monday that the kingdom's economy could contract by as much as three percent this year following a slowdown in exports and sluggish domestic consumption.
The state National Economic and Social Development Board has estimated gross domestic product (GDP) growth in 2009 at between minus one and zero percent, but Finance Minister Korn Chatikavanij said the outlook was bleaker.
Even with a raft of stimulus packages aimed at boosting the struggling economy, Korn said the kingdom was looking at a GDP drop of three percent.
"The ministry decided to adjust the projection of our GDP this year as falling exports and domestic consumption will lead GDP to contract further than our previous projection," he told reporters.
"If the government does nothing, our GDP will contract up to nine percent."
Thai exports fell 11.3 percent year-on-year in February while January exports were down 26.5 percent, due to weak demand as the global financial meltdown hits key markets in the United States, Europe and Japan.