Thailand's economy is in danger of slipping into recession unless urgent action is taken to restore confidence of investors and tourists, Abhisit Vejjajiva, the country's prime minister has warned.

In his maiden speech to parliament, Mr Vejjajiva said the unemployment rate could double unless the political turmoil that has paralysed the country is brought to an end.

Mr Abhisit's speech was delivered a day late and in the Foreign Ministry rather than parliament which was blockaded by thousands of anti-government protesters for a second day.

"Political conflicts that have spread to civic groups could push the economy, along with the tourism industry, into recession if action is not taken quickly to resolve them and revive confidence among investors and foreign tourists," he said.

"These conflicts are the country's weakness, especially at a time the world economy is entering its worst crisis in a century," he added.

Slowing exports, plummeting tourist arrivals, weak commodity prices and delayed private investment would be the major problems facing Thailand in 2009 as the global economy weakened, he said.

"With these problems, the outlook is for the number of unemployed to double from 500,000 now to a million, which would aggravate social problems, including those related to poverty and crime," Mr Abhisit said.

The Prime Minister has previously said he would implement a 300 billion baht (£5.9 billion) spending plan to jump-start the ailing economy and its crucial tourist industry. Funding for the package is expected to be outlined in a supplementary budget bill.

Even as he appealed for unity, Mr Abhisit's maiden speech was punctuated by the shouts of protesters accusing him of stealing power and calling for snap elections.

On Monday MPs had refused to run the gauntlet of red-shirted members of the Democratic Alliance against Dictatorship (DAAD), who support the ousted premier Thaksin Shinawatra.

Early today MPs arrived at parliament in a fleet of police vans but when DAAD protesters refused to clear the way they moved to the foreign ministry. A handful of protesters confronted police outside the ministry as proceedings began.

The latest protests have raised fears of a renewed descent into the political chaos orchestrated by the anti-Thaksin group People's Alliance for Democracy (PAD) during the previous government of Somchai Wongsawat.

Seven months of protests aimed at toppling Mr Somchai culminated in an eight day long blockade of Bangkok's aiports and brought the country's economy to its knees

After Mr Somchai's government was dissolved, Eton and Oxford educated Mr Abhisit scraped into power in a closely fought election on December 17, to become the country's third prime minister in four months.

His election raised hopes that the troubled country's political crises would be brought to an end. But his party, which won mainly thanks to the pressure of the military, heads a coalition that some analysts doubt is strong enough to last until the next general election, due in 2011.

The manner of his rise to power is also a cause of concern. The protesters of DAAD, an eclectic mix of farmers, urban labourers and supporters of Mr Thaksin, who was ousted in a coup in 2006, claim his election was a coup in disguise.

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