After mitigating the damages done by the economic collapse, Thailand has kept its economy barely afloat, but improving economic conditions may help the country-related exchange traded fund (ETF) sail on.

Thailand’s Central Bank kept its benchmark interest rate unchanged, supporting Thailand’s “fragile” economic recovery, reports Suttinee Yuvejwattana for Bloomberg. The government has attempted to revive growth by increasing spending and stimulating consumption. (Hurdles Thailand has to overcome).

Finance Minister Korn Chatikavanij expects GDP to expand by as much as 4% in the last quarter of 2009 on increased government spending and improvements in exports. The ministry projected a 19% drop in exports this year, followed by a 10% rise next year. (Reasons to watch Thailand)

Moody’s kept a negative outlook for Thailand’s credit rating, stating that “political unrest could erupt again.” Protests that ousted the previous regime in 2006 have hurt consumer confidence.

Thailand’s economy is likely to contract 3.5% to 4% year-over-year in the third quarter and is expected to grow 3% to 4% year-over-year in the fourth quarter, writes Orathai Sriring for Forbes. Improvements in the third quarter from the second quarter were attributed to improvements in consumption, investment and exports.

For more information on Thailand, visit our Thailand category.

• iShares MSCI Thailand (NYSEArca: THD): up 62.8% year-to-date

Max Chen contributed to this article.

Tags: Asia, Emerging Markets, Frontier Markets, Global ETFs, Thailand, THD