The Thai economy contracted by 0.6 per cent in the first quarter of 2014 compared with the same period a year earlier, officials said Monday.
Gross domestic product shrank by 2.1 per cent from the previous quarter but the economy remained sound, backed by low unemployment and low inflation, the National Economic and Social Development Board reported.
The government think tank projected 1.5 to 2.5 per cent growth for the Thai economy this year, down from its previous forecast of 3.5 to 4.0 per cent.
"The contraction of the Thai economy in the first quarter was due primarily to the contraction in domestic demand," said the NESDB.
Private consumption contracted 3.0 per cent, year-on-year, as consumer confidence was impacted by increasing concerns over the political situation and "the continual deceleration of household income," NESDB said.