Bangladesh’s overall economic indicators are showing signs of stabilisation, with inflation easing, wage growth improving and foreign exchange reserves rising, according to officials following a high-level government meeting.
The meeting, chaired by Chief Adviser Professor Muhammad Yunus, was held on Monday at the State Guest House Jamuna in Dhaka to review the country’s economic progress and budget expenditure.
Finance Adviser Dr Salehuddin Ahmed, Planning Adviser Wahiduddin Mahmud and Bangladesh Bank Governor Ahsan H Mansur were among those in attendance.
Officials reviewed a wide range of economic indicators, including inflation, wage growth, agricultural output, the financial and external sectors, the current account, remittance inflows, imports and letters of credit.
Inflation shows downward trend
The meeting was told that average inflation over a 12-month period fell below 9% in November 2025 for the first time since June 2023.
On a point-to-point basis, inflation had crossed 9% in March 2023, peaking at 9.33%. However, it dropped below that level in June 2025 and declined further to 8.29% in November 2025.
Officials said inflation is expected to fall below 7% by June 2026, driven by the government’s contractionary monetary policy and austerity measures.
Wage growth gap narrows
Participants were also informed that the long-standing gap between inflation and wage growth, which had eroded real incomes in recent years, has narrowed significantly in recent months.
In November 2025, point-to-point inflation stood at 8.29%, while wage growth reached 8.04%. By comparison, average inflation and wage growth in the 2022–23 fiscal year were 9.02% and 7.04% respectively.
As a result, officials said real incomes, which had declined sharply due to high inflation, are expected to recover gradually during the current fiscal year.
Agricultural output improves
The meeting noted improved performance in the agricultural sector, supported by government incentives and management measures.
Boro rice production was reported to be strong in the previous fiscal year, while favourable weather conditions have raised expectations of a good Aman harvest this year.
As of 15 December 2025, Aman production stood at 160.95 lakh metric tonnes and is expected to exceed the government’s target once harvesting is completed. Although Aus production fell slightly short of its target, overall food grain production increased by 7.2% compared to the 2024–25 fiscal year.
Officials said the government is on track to meet its food grain procurement targets for the current year.
Reserves rise amid external sector stability
On the external front, gross foreign exchange reserves stood at $32.57bn as of 18 December 2025, up from around $25bn in August 2024.
Officials attributed the increase to exchange rate stability, higher remittance inflows and a recent rise in interest rates.
They expressed confidence that foreign exchange reserves would continue to strengthen in the coming months.
The meeting concluded that imbalances across key economic indicators are gradually moving towards a more stable and balanced position.
