Thailand's economy emerged from recession in the second quarter as manufacturing grew and the government increased spending, said the country’s Economic & Social Development Board (NESDB).

The NESDB on August 24 released its report on the country’s economic situation and prospects for 2009, saying that its gross domestic product had grown by 2.3 percent from the first quarter, when seasonally adjusted.

NESDB General Secretary Ampon Kittiampon stated that the economy had bottomed out and there were signs of recovery in the second quarter in terms of unemployment, government investment and private projects.

However, he added that the economy will continue to contract in the third quarter before finally moving into positive territory in the last three months of the year.

The agency also revised its growth forecast for 2009 to between minus 3.0 and 3.5 percent, from its previous estimate of minus 2.5 to 3.5 percent.

It predicted that exports would fall by 16.3 percent while imports would shrink by 24.2 percent. Its trade surplus stands at 14.0 billion USD and inflation is forecast at minus 0.5 percent to minus one percent./.