Thailand’s economy expanded by +5.8% in Q4 2009 as gross domestic product (GDP) increased to 3.6% in the quarter, double the 1.8% predicted by economists and well above Q3’s 1.7% and was the fastest the economy has grown in ten years, according to data from the Bank of Thailand.

Tarisa Watanagase, governor of the Bank of Thailand, stated that the current economic recovery supported the case for a normalising in monetary policy.

Analysts have said that growth in the export-driven economy will be supported in 2010 as Government spending accelerates and exports and manufacturing rebound, however the outlook for policy rates is muddied by political uncertainty and could still derail the economy.

The economy had contracted by -2.3% in 2009 as the economy emerged from its first recession in 11 years during the second quarter.