Bangladesh sees modest growth in FY26 Q2

Bangladesh recorded modest economic growth in the second quarter of fiscal year 2025-26, as persistent inflation and weak export performance continued to weigh on the recovery, according to a new review by the Metropolitan Chamber of Commerce and Industry, Dhaka.

The report, titled “Review of Economic Situation in Bangladesh October–December 2025 (Q2 of FY26),” highlights a period of limited expansion marked by ongoing structural challenges, despite signs of gradual macroeconomic stabilization.

The chamber noted that overall growth remained subdued due to sluggish exports, cautious private investment and tight monetary policy. Elevated inflation continued to pressure households and businesses, prompting authorities to maintain credit restrictions that further dampened economic activity.

While trade deficits widened during the quarter, strong inflows of remittances provided some relief. Higher remittance earnings helped bolster foreign exchange reserves and contributed to maintaining relative stability in the balance of payments.

The review suggests that although macroeconomic indicators show incremental improvement, Bangladesh’s recovery remains fragile and vulnerable to both domestic constraints and external pressures.