Q4 GDP 1.7 yy vs 2.5 in Reuters poll
Q4 GDP 0.6 qq sa vs 0.1 in poll
2023 growth was 1.9 vs 2.4 in poll
2024 GDP growth outlook cut to 2.2 to 3.2 from 2.7 to 3.7
Economic risks heighten chance of a rate cut analysts

BANGKOK, Feb 19 Reuters Thailand39;s economy unexpectedly contracted in the fourth quarter of 2023 and policymakers downgraded the outlook for this year, adding to pressure on the central bank to give in to the prime minister39;s demands for a rate cut.

Prime Minister Srettha Thavisin, who is also the finance minister, has been at loggerheads with the central bank over the direction of monetary policy, repeatedly saying rate cuts will help the economy he describes as being in crisis as it confronts high household debt and China39;s slowdown.

Gross domestic product GDP fell 0.6 in the October to December quarter on a seasonally adjusted basis, data from the National Economic and Social Development Council showed on Monday, down from a revised 0.6 rise in the third quarter. The first quarterly contraction in a year compares with a 0.1 rise forecast in a Reuters poll.

From a year earlier, the economy grew 1.7, slightly faster than a revised 1.4 growth in the third quarter but slower than a forecast 2.5 expansion.

A major drag in the fourth quarter was a decline in fixed investment, partly due to a delay in the budget, while private consumption stagnated and exports nearly flatlined, Capital Economic said in a research note.

Kobsidthi Silpachai, head…