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flag Bangladesh's economy projected to grow 4.8% in 2025-26, but challenges remain in poverty, jobs, and fiscal stability.

flag The World Bank projects Bangladesh's economy to grow 4.8% in FY2025-26, up from 4% in the prior year, with growth expected to reach 6.3% in FY2026-27, driven by strong exports, record remittances, and a stabilized exchange rate. flag Inflation has eased due to tight monetary policy and strong agricultural output, while foreign exchange reserves improved. flag However, the fiscal deficit widened due to weak tax collection and rising subsidies, poverty increased, and labor force participation declined—especially among women. flag The World Bank warns that sustained growth and job creation require urgent reforms, including improving revenue collection, addressing banking sector risks, reducing energy subsidies, and enhancing the investment climate. flag The Asian Development Bank plans $2.5 billion in project financing for Bangladesh in 2026, supporting infrastructure, climate resilience, and social protection.

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