The giant waves slammed six Thai provinces along the Andaman coast, killing some 5,400 people and devastating the tourism and fisheries industries there.

The bank's Monetary Policy Committee (MPC) said the Thai economy in 2004 will have expanded at about 6.2 percent.

"For 2005, without the tsunami disaster, the aforementioned assumptions would increase the GDP projection by 0.2 per cent compared to the previous projection," assistant bank governor Atchana Waiquamdee said in a statement posted on the bank's website.

"The tsunami disaster however, was expected to have a negative impact of 0.5 percent (and) as a result, the Thai economy was projected to be lower than the previous projection by 0.3 percent," she said.

Two weeks ago Thai authorities were quick to give assurances that the tsunamis would not affect economic growth in 2005.

"Growth will be at the same level, despite the tsunami," Ampon Kittiampon, secretary general of the National Economic and Social Development Board, said at the time.

GDP grew by 6.2 percent in 2004 and 7.8 percent in 2003.

Western analysts and diplomats have calculated a modest loss of growth of between 0.3-0.5 percent.

According to Atchana, "the MPC assessed that the (tsunami) impact on the Thai economy would not be substantial."

The Bangkok Post cited Atchana as saying some 1.2 million tourists would avoid Thailand's tsunami disaster zones this year, resulting in losses topping 1.0 billion dollars, while fishery losses would hit 3.07 billion bahtmillion dollars).

But much of the negative impact in the sectors could be offset by similar amounts of financial injections in the form of soft loans, donations and other assistance, she said.

Thailand's economy was expanding at a "satisfactory rate" supported by growth in exports and domestic spending, she said, adding that an appreciating Thai currency, the baht, and easing oil prices could help tame inflation.