Thailand's gross domestic product in the fourth quarter of last year rose 5.8 per cent year-on-year, about 2.7 to 3.2 per cent higher than initial projections, National Economics and Social Development Board (NESDB) secretary-general Ampon Kittiampon said on Monday.

"This was the first time in 2009 the GDP went up and the recovery was quicker than expected, causing the annual GDP to contract only 2.3 per cent," Mr Ampon said.

The GDP in 2009 was initially expected to shrink three per cent.

He said the export sector clearly revived in the previous quarter because of continuous improvement in the global economy.

Last quarter, exports rebounded 4.1 per cent after plunging 14.8 per cent in the third quarter of 2009. Major export goods were automobiles, computers and electronic parts.

Mr Ampon said investments in the industrial sector last quarter increased 9.9 per cent, while industrial output soared 67.2 per cent. Electronics, food and automotive industries enjoyed rapid expansion, thanks to more orders from overseas.

Prices of agricultural products such as para rubber, cassava and palm oil also rose, resulting in higher revenues for farmers.

He said 1.63 million foreign tourists visited the country in Dec 2009, up 40.8 per cent year-on-year. The country received a total of 4.2 million foreign tourists in the fourth quarter, up 26.2 per cent. There were 14.1 million foreign tourists travelling to the country last year.

The NESDB chief said the private sector had more confidence in the Thai economy, as the construction sector also climbed up 5.1 per cent in the previous quarter.

However, Prime Minister Abhisit Vejjajiva expressed confidence that this year's GDP could still grow by 4.7 per cent.

Mr Abhisit said the NESDB expected this year's GDP to rise between 3.5 and 4.5 per cent. "

I believe the GDP could increase 4.7 per cent even though there are many influencing factors. It can still be achieved if we look at the country's economic fundamentals.

"But the government will not let politics get in the way of the economic stimulus efforts," Mr Abhisit said.

The economy was beginning to recover and the country would lose its chance to further develop the economy if political situation came into play, he said.

"The task of reviving the Thai economy would be more difficult if the economy is hit by politics," the premier said.

Finance Minister Korn Chatikavanij warned the current political uncertainty could damage confidence in the economy and this quarter's GDP might not match the previous quarter.

"The government hopes that private sector investment will propel the economy this year," Mr Korn said.

Events both within and outside the country could affect economic confidence and economic recovery could stumble.