Thailand's economy contracted 0.2% quarter on quarter on a seasonally adjusted basis in Q2 2026, a smaller decline than the 0.6% drop economists expected, while annual GDP growth slowed to 1.9% from 2.8% in Q1 but beat the 1.7% consensus. The quarter also saw a $17.6 billion current-account deficit, reversing a $1.4 billion surplus in the prior quarter and marking the first deficit in eight quarters, as officials highlighted the country's dependence on imported oil. The National Economic and Social Development Council raised its 2026 growth forecast to 2.0%-2.5% and lifted its goods export outlook to 15.1% on strong AI-related electronics shipments, but weak private consumption, high household debt, higher energy costs, tight fiscal conditions and uncertainty over U.S. trade negotiations continued to weigh on the outlook.