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Bangladesh’s economy continues to demonstrate resilience despite a challenging global and domestic environment, supported by strong remittance inflows and steady expansion in the services sector, according to the Asian Development Bank’s (ADB) latest Asian Development Outlook (ADO) July 2026 released on Thursday.
The ADB projected Bangladesh’s gross domestic product (GDP) to grow by 3.7 percent in fiscal year (FY) 2026 before accelerating to 4.5 percent in FY2027, saying sustained policy reforms and improving macroeconomic conditions are expected to strengthen the country’s growth momentum.
“Bangladesh’s economy continues to show resilience amid a difficult global and domestic environment, supported by strong remittance inflows and steady services activity,” said Akira Matsunaga, Officer-in-Charge of ADB’s Bangladesh Resident Mission.
He said continued reforms to strengthen macroeconomic stability, improve the investment climate, enhance financial sector governance, and address energy and infrastructure bottlenecks would be critical to supporting a stronger and more inclusive recovery.
“These reforms will also be important to crowd in private investment, create quality jobs, and strengthen economic resilience,” he added.
According to the report, economic growth in FY2026 will be driven by robust remittance inflows, continued expansion of the services sector and targeted credit support for priority sectors, despite a tight macro-financial environment.
Inflation is projected to average 9.0 percent in FY2026 before easing slightly to 8.8 percent in FY2027 as macroeconomic conditions gradually improve.
The ADB said moderate inflation, simplified business regulations, improved governance, reforms in tax administration and continued incentives for remittance inflows are expected to strengthen private consumption and investment in FY2027.
The report also noted that the services sector will remain a key driver of economic activity, while ongoing structural reforms are expected to improve the business environment, boost investor confidence and support stronger medium-term growth.
The Manila-based lender stressed that maintaining prudent macroeconomic management and accelerating structural reforms would be essential to sustaining growth, improving competitiveness, attracting private investment and strengthening Bangladesh’s resilience to external shocks.