Bank of Thailand's northern office reports Q2 2026 economic contraction driven by elevated living costs and reduced agricultural income—particularly lower prices for rice, pineapple, and livestock. Manufacturing shows mixed signals (electronics components growth offsetting declines in metals and beverages), while tourism and private investment contracted. Recovery is expected in Q3 as stimulus measures take effect and energy costs ease, though labor market weakness and structural cost pressures remain concerns for SMEs and farm-dependent communities.