Jul signals promising economic rebound: Bangladesh Planning Commission

The first month of fiscal 2025-26 shows early signs of economic rebound, although growth projections remain modest due to ongoing political issues, subdued investment and industrial activity, and global headwinds, including US reciprocal tariffs, GED said in its latest monthly economic update.

Multilateral institutions have revised their forecasts downward for this fiscal. The World Bank projects growth at 3.3-4.1 per cent, while the Asian Development Bank estimates it at 3.9 per cent.

The country’s external sector reflects steady performance and sound policy management, while offering clear opportunities for structural improvements and export diversification, the update noted.

Overall, the relatively steady level of capital machinery imports-aside from the October anomaly-suggests consistent, albeit moderate, investment momentum, according to domestic media reports.

This trend, paired with variation in total imports, points to a diversified composition of import demand in Bangladesh's external sector.

Structural reforms and economic policy reorientation, focusing on innovation and stimulating investment, including foreign direct investment, are crucial for strengthening the economy and enhancing resilience to future shocks, the document added.

ALCHEMPro News Desk (DS)