Bangladesh’s economy is expected to grow by 5 percent in 2026, according to a new government report.
The projection was made by the General Economics Division under the Planning Commission. It was published in the January 2026 Economic Update and Outlook.
The report said the economy was on a fragile but resilient recovery path. It noted that growth was improving despite structural challenges.
The GED said economic activity had rebounded compared to the previous fiscal year. The recovery comes as the country manages a democratic transition and prepares to graduate from least developed country status.
Provisional data for the first quarter of fiscal year 2026 showed real gross domestic product growth at 4.5 percent. This was up from 2.58 percent in the same period a year earlier.
The report said high inflation remained the biggest concern. Inflation was rising faster than wages, reducing household purchasing power.
Consumer prices increased by 0.20 percentage points last month. Wage growth rose by only 0.03 percentage points to 8.07 percent.
The external sector showed foreign exchange reserves rose to 33.19 billion dollars in December 2025. Remittances reached 3.22 billion dollars in the same month.
Export earnings remained stable at around 4 billion dollars a month. The garment sector continued to earn most of the foreign currency.
The GED warned that weak governance and policy uncertainty could slow the recovery.
