Bangkok (VNA) - The Thai economy may farebetter than expected, helped by recovering domestic consumption and exports,according to the Fiscal Policy Office (FPO).

Kulaya Tantitemit, acting director-general of FPO said that the Thai economy should contract less than the7.7 percent the office projected in October because economic conditions areimproving, as indicated by the GDP in the third quarter.

Thailand's GDP contracted by 6.4 percent year-on-year in thethird quarter following a 1.8 percent decline and a 12.1 percent contraction inthe first and second quarters, respectively. After a seasonal adjustment, theeconomy expanded by 6.5 percent quarter-on-quarter in the July-to-Septemberperiod from the second quarter. In the first nine months, the economycontracted by 6.7 percent.

The improvement was attributed to the easing of lockdownmeasures and domestic travel restrictions, coupled with measures torehabilitate the economy through fiscal stimulus.

Full-year GDP contraction was forecast at 7.7 percent thisyear by the FPO, with growth of 4.5 percent projected for next year.

Kulaya said domestic consumption is the key driver forThailand's economic performance this year, while exports shrunk because of thepandemic.

AnusornTamajai, former dean at Rangsit University’s Faculty of Economics, estimatedthat the second wave of COVID infections would cost the local tourism industry about16 billion baht (530 million USD) in loss during the New Year holidays.

National Economic and SocialDevelopment Council (NESDC) forecasts that the Thai economy will grow by up to 4.5 percent in 2021./.