ADB: Bangladesh economy remains resilient despite slower growth

Bangladesh's economy continues to demonstrate resilience despite persistent global and domestic challenges, with strong remittance inflows and steady expansion in the services sector supporting growth, according to the Asian Development Outlook (ADO) July 2026 released by the Asian Development Bank (ADB).

The ADB forecast Bangladesh's gross domestic product (GDP) to grow by 3.7% in fiscal year (FY) 2026 and 4.5% in FY2027, saying continued reforms and improving macroeconomic conditions are expected to reinforce the country's growth momentum, according to an ADB press release issued on Thursday.

"Bangladesh's economy continues to show resilience amid a difficult global and domestic environment, supported by strong remittance inflows and steady services activity," said Akira Matsunaga, Officer-in-Charge of ADB's Bangladesh Resident Mission.

He said sustained reforms to strengthen macroeconomic stability, improve the investment climate, enhance financial sector governance, and address energy and infrastructure constraints would be essential for a stronger and more inclusive recovery.

"These reforms will also be important to crowd in private investment, create quality jobs, and strengthen economic resilience," he added.

According to the report, economic growth in FY2026 will be driven by robust remittance inflows, continued expansion of the services sector and targeted credit support for priority sectors despite a tight macro-financial environment.

The ADB projected inflation at 9.0% in FY2026, easing slightly to 8.8% in FY2027 as macroeconomic conditions improve.

It said moderate inflation, simplified business regulations, improved governance, tax administration reforms and continued remittance incentives are expected to boost private consumption and investment in FY2027.

The report also noted that the services sector will remain a key driver of economic activity, while ongoing reforms are expected to improve the business environment and strengthen investor confidence over the medium term.

The ADB stressed that sustained policy reforms and prudent macroeconomic management would be critical to maintaining growth, improving competitiveness and enhancing Bangladesh's resilience to external shocks, the release added.