The Economic and Business Forecasting Center at the University of the Thai Chamber of Commerce (UTCC) released its prediction on Thursday saying gross domestic product growth for the fourth quarter of the year is projected at minus 3.7 percent.
The center forecast the economy would expand by only 1.4 percent overall this year.
It projected that exports would grow by 16.5 percent from last year, 3.9 percent for inflation, an average of 30.50 baht to the U. S. dollar exchange rate for the Thai currency, a 3.25 percent average interest rate and one percent unemployment in 2011.
The center also predicted that in 2012 economic expansion would be around 4.7 percent.
The projection was based on the hypothesis that the global economy would grow by four percent and the country's exports would increase 10.2 percent.
Thanawat Polwichai, director of the center, said if the government is able to implement rapidly the effective countermeasures, it is possible that the country's economy could grow by five to seven percent next year.
He added, however, that Thailand's GDP growth for next year could plummet to only two to three percent if the Euro crisis continues.