Thailand's Q2 GDP grew 1.9%, down from 2.8% in Q1; seasonally adjusted it contracted 0.2% quarter on quarter. NESDC raised its 2026 forecast to a midpoint of 2.2% (range 2.0-2.5%). Tourist arrivals fell 3.8%, and the current account posted its first deficit in 8 quarters because of higher oil and gold prices. NESDC flagged SME NPLs at 9% of loans and falling SME lending in manufacturing, construction, and wholesale/retail as risks, so expect tighter credit scrutiny. Plan for a soft domestic demand backdrop and rising input costs this year.