A source close to the Bank of Thailand told Reuters that official figures for Thai 1998 gross domestic product were likely to be revised to show a slightly greater contraction.

"When the 1998 GDP figure is revised, it will likely show bigger negative growth. From what I can see, it can only be in that direction, not the other way," said the source.The Thai government and the International Monetary Fund have previously estimated that 1998 GDP fell eight percent. The source close to the central bank declined to estimate the actual extent of the slowdown last year.

Sources close to the ministry of finance said the central bank was working on the assumption the Thai economy contracted by eight per cent in the first 1998 quarter, by 10.5 per cent in the second, 7.5 per cent in the third and six per cent in the fourth. This would imply aneight per cent contraction for the year, in line with the official estimate, but the industry data upon which this work is based are fairly imprecise, the sources said.

In particular, the central bank's estimate for the fourth 1998 quarter is likely to be revised down, putting the average full-year contraction at eight to 8.5 per cent, they said. Thailand is reeling under its worst economic crisis in decades after it devalued the baht in July 1997 and accepted an international bailout programme sponsored by the IMF.