Bangladesh economy remains in fragile, uneven recovery phase: MCCI
Although the political and administrative instability that followed the transition period in late 2024 has eased considerably, the economy has yet to regain strong momentum, says the Metropolitan Chamber of Commerce and Industry.
The Bangladesh economy remained in a "fragile and uneven recovery phase" during the January–March quarter of FY2025–26, as persistent inflation, weak private investment, subdued industrial activity and external sector pressures continued to weigh on overall economic momentum, according to the Metropolitan Chamber of Commerce and Industry.
In its latest "Review of Economic Situation in Bangladesh" for Q3 of FY26, published yesterday (12 May), the business body said although the political and administrative instability that followed the transition period in late 2024 has eased considerably, the economy has yet to regain strong momentum.
"High living costs, cautious private sector sentiment and weak industrial expansion continued to weigh on overall economic performance," the report stated.
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According to the review, economic growth during the January–March quarter remained modest due to slower export expansion, subdued private investment and the continuation of tight monetary policy aimed at containing inflation.
Restrictive credit conditions, elevated borrowing costs and high inflation continued to suppress domestic demand, business expansion and consumer spending during the quarter, the report said.
Despite the challenges, the chamber said strong remittance inflows continued to support the economy by stabilising foreign exchange reserves and partially offsetting the impact of a widening trade deficit.
