The Asian Development Bank (ADB) has forecast a gradual rebound of Bangladesh’s economy over the next two fiscal years, with growth expected to gain momentum after a period of slowdown.
According to the latest Asian Development Outlook (ADO) released in April 2026, the country’s Gross Domestic Product (GDP) growth is projected to rise to 4 per cent in FY2026, before accelerating further to 4.7 per cent in FY2027. This marks a recovery from the subdued 3.5 per cent growth recorded in FY2025.
ADB attributed the improved outlook to a likely rebound in domestic consumption and investment, supported by easing political uncertainty following the general election. Although recent tensions in the Middle East disrupted supply chains and economic activity, their impact is expected to diminish over time.
ADB Country Director Hoe Yun Jeong noted that Bangladesh continues to face challenges stemming from global volatility, domestic structural issues, and pressures on external and financial sectors. However, he expressed optimism that the government’s reform agenda could help stabilise the economy and rebuild investor confidence.
Inflation is expected to remain high at around 9 per cent in FY2026 due to elevated global energy prices, before easing slightly to 8.5 per cent in FY2027 as external pressures subside. Meanwhile, the current account deficit is projected to remain modest, at 0.5 per cent of GDP in FY2026 and 0.6 per cent in FY2027.
The report also highlighted that remittance inflows are likely to stay resilient, supporting domestic demand. Growth in services, agriculture and industry is expected to strengthen, driven by improved purchasing power, policy support, export performance and infrastructure development.
However, ADB cautioned that risks remain tilted to the downside. Prolonged global conflicts, rising energy prices, and disruptions in trade and supply chains could put further pressure on inflation, fiscal balance, and external stability. Climate-related shocks also remain a significant long-term concern for Bangladesh’s economy.
