Thailand's gross domestic product grew in the third quarter of this year from the previous three months, and on yearly basis the economy contracted in the slowest pace in a year. The government's stimulus spending helped to pull the economy out from recession and managed to spur demand and support consumer spending that encouraged the central bank to raise its assessment for the economy.

Thailand's gross domestic product expanded 1.3% in the third quarter compared with a previous expansion by 2.3% that was revised to 2.2%, and forecasts referred to 2.3%. On yearly basis, Thailand economy shrank 2.8% in 3Q the least in a year following a contraction by 4.9%, while it was anticipated to shrink 3.2%.

However, government spending had the greatest rule in the recovery process as the government allocated as much as 1.06 trillion baht ($31 billion) as a three years investment program in order to support economic recovery. The government provided cash handouts to consumers that was reflected on retail sales to gain 0.1% in the quarter ended September compared with a decline by 0.7% in the previous quarter.

The Bank of Thailand said the economy is "out of recession" after improvements witnessed in the business, industrial and exports sectors, worth mentioning that exports fell the least in a year in October after world demand revived backed by more than $2.2 trillion of stimulus spending around the world.

Moreover, the manufacturing sector rebounded 2.6% last quarter compared with 5.5% in the second quarter, but it is still 5.9% less than last year's levels. Construction industry declined 1.7% following an incline by 5.8%, while on the yearly record it gained 1.8%.

Monetary policy makers decided to keep interest rates at the low record of 1.25% for four straight meetings to stimulate economic growth saying that the nation's economic recovery is at an "early stage". The economy is not facing inflationary pressures as energy, raw materials and primary goods prices remain lower than last year's levels which is encouraging the central bank to keep borrowing costs low.

Finally, advancing economic conditions in the Asian region helped Southeast Asia's second largest economy to rebound, having the nation's equity market rising in the second and the third quarter, while the baht gained 4.5% against the green currency. Yet, the government expected Thailand economy to expand this quarter to prove that it emerged from the worst financial crisis since the great depression.