Dhaka: The General Economics Division (GED) of the Planning Commission has expressed optimism that the new government will take prudent measures to ensure macroeconomic stability.
According to Bangladesh Sangbad Sangstha, the latest economic update and outlook from GED highlights key priorities for the government, including attracting investment, generating employment, controlling inflation, and strengthening investor confidence.
The report also underscores the need for improved implementation of the Annual Development Programme (ADP), maintaining debt sustainability, and ensuring policy consistency to support long-term economic growth. A notable initiative is the planned introduction of the government’s Family Card programme, aimed at strengthening social protection and supporting vulnerable groups.
The report attributes economic slowdown to factors such as weak project preparation, procurement delays, land disputes, and coordination challenges. Despite domestic issues, Bangladesh’s external sector remains relatively stable, with foreign exchange reserves at approximately $33.18 billion in January 2026, following a significant increase in December. Remittance inflows were strong, reaching $3.17 billion in January, compared to $2.19 billion in the same month last year, with expectations of further increases during Ramadan.
Merchandise exports also showed growth, driven by the ready-made garments (RMG) sector. RMG exports rose from $3.23 billion in December to $3.61 billion in January, while non-RMG exports increased to $798.9 million after a slight dip in December. However, imports of capital machinery remained low, suggesting weak private investment despite rising overall imports.
Bangladesh continues to face inflationary pressure at the start of 2026, with rising prices of fish, fruits, and vegetables pushing up food costs, while rice prices showed signs of easing. Inflation slightly increased to 8.58 percent in January 2026 from 8.49 percent in December 2025. Food inflation rose to 8.29 percent in January, up from 7.71 percent in December, while non-food inflation decreased to 8.81 percent from 9.13 percent.
The report notes that food remains the largest contributor to overall inflation, accounting for 43.06 percent of headline inflation in January, compared to 40 percent in December. Despite some non-food items recording higher inflation rates, their lower weights in the consumer price index limited their impact on overall inflation.
Within the food basket, rice’s contribution to food inflation declined significantly as price growth slowed. However, this reduction was offset by rising prices of vegetables, fruits, and fish. The GED attributed higher vegetable prices to increased transportation costs and excessive profit-taking by traders, highlighting the need for better supply chain management.
The report cautions that rising inflation combined with stagnant wage growth is putting pressure on household purchasing power. While inflation rose to 8.58 percent in January, wage growth remained nearly unchanged at 8.08 percent. Since September 2025, inflation has consistently outpaced wage growth, creating a widening gap between price increases and income gains.
Meanwhile, the National Board of Revenue (NBR) recorded modest gains in revenue collection in January, achieving 70.48 percent of its target. However, the report highlighted weak implementation of the ADP in the current fiscal year, with FY2025-26 potentially recording the lowest ADP implementation rate in recent years.