Showcasing a remarkable pace of growth in 10 years, Thailand posted a 3.6% rise in its GDP in the last quarter of 2009.

The benchmark SET Index gained 1.2 percent.

Being an export-driven economy, Thailand has gained most on increased exports and Government spending.

"There may be growing pressure to take nominal steps to normalize monetary policy, such as a 25 basis point hike in early Q2, perhaps", said Vishnu Varathan, an Economist at Forecast in Singapore.

However, the fear of the fallouts of the political instability in the country are looming large as supporters of exiled former Prime Minister Thaksin Shinawatra have stepped up protests against the Government.

"We have no more time to waste. If political unrest emerges again we may not be able to win back confidence", said Ampon Kittiampon, Secretary-General at the National Economic and Social Development Board, which is the Government's economic advisory body in Bangkok.

"Any political unrest will damage our image, tourism and the economy", said Santi Vilassakdanont, Chairman of the Federation of Thai Industries.

Ampon further said that the economy may expand by 3.5 to 4.5%, this year, if the political conditions get better.

The five-year bond yield rose by two basis points to 3.44 %. The central bank has kept its key policy rate stable since April 2009.