Bangladesh's GDP projected to grow at 5% in 2026: Planning Commission

The economy is projected to expand at 5 per cent in 2026, while structural challenges with inflation are expected to ease gradually.

A stable and reformed political environment, along with smart technology integration, is critical for shifting from a low-cost labour model to higher-value economic activities, the document observed, cautioning that uncertainty among economic elites and institutional weaknesses remain key risks.

As progress towards the UN Sustainable Development Goals (SDGs) remains slow, the publication suggested that evidence-based policymaking, supported by village-level interventions, could help achieve sustainable development outcomes at the local level.

General inflation rose further in December 2025 to 8.49 per cent from 8.29 per cent in November. Price inflation outpaced wage growth in December: while the former rose by 0.20 percentage points, the later increased marginally from 8.04 per cent to 8.07 per cent.

Bank deposits continued to grow in October and November, with year-on-year growth reaching 10.8 per cent in November. Public sector credit expanded rapidly, rising to 23.24 per cent in November 2025, reflecting higher government borrowing.

Private sector credit growth remained modest at 6.58 per cent, indicating subdued private investment.

Foreign exchange reserves strengthened in the first half of fiscal 2025-26 (FY26), with gross reserves rising to $33.19 billion in December 2025.

Remittance inflows also grew robustly, reaching $3.22 billion in December, supported by regulatory incentives and a more favourable exchange rate regime.

Export earnings showed signs of stabilisation, averaging around $4 billion per month, with the readymade garment sector remaining the dominant contributor.

The exchange rate remained broadly stable in December, the document added.

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