Bangladesh’s growth could reach 4pc in current fiscal year: ADB

The Asian Development Bank (ADB) has forecast an increase in Bangladesh’s economic growth rate, saying the country’s growth could rise to 4 per cent in the 2026–27 fiscal year. The projection was made in its latest “Asian Development Outlook September 2026”. ADB’s September 2026 data series also identifies the 2026–27 figures as forecasts. According to ADB, Bangladesh recorded 3. 5 per cent growth in the 2024–25 fiscal year. Growth could rise slightly to 3. 7 per cent in 2025–26 and increase further to 4 per cent in 2026–27. Economic activity slowed somewhat in the final quarter of the 2025–26 fiscal year as disruptions to supply chains caused by the conflict in the Middle East affected the economy. However, ADB expects the impact to remain limited.

As political uncertainty eases following the national election in early 2026, consumer spending and investment could increase, supporting somewhat stronger economic growth. Qingfeng Zhang, ADB’s country director for Bangladesh, said, “Bangladesh’s economy has begun to recover. However, the global situation is undergoing various changes, while Bangladesh also faces several domestic constraints. Therefore, the recovery process is not yet free of risks. ” Qingfeng Zhang further said, “This is the right time to accelerate reforms in macroeconomic management, the financial sector, energy security and the business environment. These reforms will increase private investment and create decent employment, enabling the economy to stand on a stronger foundation. ADB will stand by Bangladesh in implementing the reforms. ” Inflation to decline ADB has also offered some positive news on inflation. It said inflation could ease slightly to 8. 7 per cent in the 2025–26 fiscal year. However, it could rise again to 9 per cent in 2026–27. Inflation…