Thailand growth continues to gain traction, driven by strong exports and tourism. Headline inflation has continued to inch up, although it remains low. The external position remains strong, underpinned by the sizeable current account surplus and substantial international reserves. Downside risks to growth stem mainly from spillover effects of a further escalation in US-China trade conflicts. Risks to financial stability remain contained, although some pockets of vulnerabilities remain. Thailand is aging at a relatively fast pace, reflecting its low fertility rate, putting it at risk of “growing old before getting rich”. Fiscal policy should be directed towards infrastructure investment and structural reforms in order to lift growth potential and enhance the social security system to prepare for an aging population. The current monetary policy stance is appropriate in supporting growth and financial stability, and consistent with inflation moving in line with the inflation target.