Thailand's economic stability remains strong despite a recent selloff on its stock market, a deputy finance minister said on Thursday, stressing the decline did not reflect confidence in the economy or its stability.

The main stock index hit a three-year low on Wednesday, having dropped by more than 17% so far this year, with foreign investors selling about 199 billion baht ($5.68 billion) of Thai shares.

"It could be a specific issue in the capital market, which we will have to find out," Krisada Chinavicharana told reporters.

The main index rose about 1.3% on Thursday in line with regional markets after the U.S. Federal Reserve indicated that its tightening cycle is likely over and flagged rate cuts next year.

Southeast Asia's second-largest economy grew much lower-than expected 1.5% in the July-September quarter from a year earlier, the slowest pace this year, on weak exports and government spending.

In October, the finance ministry reduced its 2023 economic growth forecast to 2.7% from 3.5% and projected growth of 3.2% in 2024. The economy expanded 2.6% last year. ($1 = 35.06 baht) (Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Martin Petty)