* Central bank still sees room to cut interest rates
* Govt expects GDP to contract more in Q1 than Q4/2008
* Sees signs of recovery in some export segments
* Cabinet to consider 1.5 trillion baht measures next week (Updates with central bank and finance minister's comments)
By Kitiphong Thaichareon and Boontiwa Wichakul
BANGKOK, April 29 (Reuters) - Thailand's economy may have hit bottom in the first quarter of 2009, a Finance Ministry official said on Wednesday, noting some recovery in exports in particular.
Still, Prime Minister Abhisit Vejjajiva said the cabinet would examine new economic measures and sources of funding next week as the government plans to spend 1.56 trillion baht ($44 billion) over the next three years, largely on infrastructure projects, to help revive the economy.
Analysts were sceptical about the notion of even a tentative turnaround, given the global economic crisis, political violence in Thailand this month and now the worries about a flu pandemic.
But Finance Ministry spokesman Ekniti Nitithanprapas said there were signs of a recovery in exports such as agricultural products and electrical appliances shipped to China, Australia and countries in Africa and the Middle East.
"Economic figures have started to improve in March, therefore the economy should have hit bottom in the first quarter," he told a news conference.
He said the economy in the first quarter would shrink from a year earlier more than the 4.3 percent contraction recorded for the fourth quarter of 2008. He didn't give any specifics.
However, Finance Minister Korn Chatikavanij told reporters later: "It's too early to say the economy has bottomed. We have to wait and see more data."
ROOM TO CUT RATES
Speaking at seminar on Wednesday night, Bank of Thailand chief economist Amara Sriphayak said the bank still had room to cut interest rates to help the economy if needed after four rate reductions since December.
"What the central bank can do is to use monetary policy and there is still room to cut interest rates further," she said.
"At the meeting in May, we will look at the economic picture and if we need to stimulate the economy, we may cut rates again," Amara said of the next rate-setting meeting on May 20.
The central bank has cut its key policy rate by a combined 250 basis points to a six-year low of 1.25 percent.
Central bank data has shown industrial output slumped around 20 percent in both January and February from a year. Analysts in a Reuters poll said central bank data on Thursday would show it fell 19 percent in March.
Exports fell 25 percent in January and then 11 percent in February. But the poll suggests the exports fall steepened in March to 23 percent.
Imports have been falling even faster at 36.5 percent in January and 43.5 percent in February. They are seen down 35.7 percent in March. [ID:nBKK435008]
"Given the enormous risks to growth that are likely to ensue following the political protests, we see plenty of scope for a bottom much further away than the first quarter, especially if the global economy enters a U-shaped recovery," said Forecast economist Carl Rajoo in Singapore.
The finance ministry's Ekniti said exports to China dropped 14 percent in March from a year earlier after a fall of nearly 29 percent in February, while shipments to the Middle East rose 3.3 percent in March and exports to Africa grew 17.6 percent.
Even so, Commerce Ministry data on April 21 showed overall exports in March still fell 23.1 percent from a year earlier, more than double the pace of the 11.3 percent drop in February.
UNEMPLOYMENT DOWN
Ekniti said the unemployment rate had fallen to 1.9 percent in February, or 714,000 people, from 2.4 percent in January -- surprising given the big falls in industrial output. The BOT has said 878,900 people were unemployed in January.
The Thai Chamber of Commerce University forecast last week that the economy could shrink 4.3 percent this year -- more if politics did not improve by the end of the third quarter -- and said unemployment would be at least 1.3 million.
Abhisit said last week the economy could contract as much as 5 percent this year after anti-government protests hurt business confidence and tourism.
However, he said on Wednesday some indicators had improved, noting fewer redundancies in March than a month earlier, although exports and imports still faced a tough time and the government would look at new measures next week. ($1=35.40 Baht) (Additional reporting Pracha Hariraksapitak; Writing by Orathai Sriring; Editing by Darren Schuettler/Ruth Pitchford)