Bangladesh Economy Remains Fragile In Q1 2026 Over High Inflation: Report

(MENAFN- IANS) New Delhi, May 16 (IANS) Bangladesh's economy remained in a“fragile and uneven recovery phase” in Q1 CY2026 as persistent inflation, weak private investment, subdued industrial activity and external sector pressures continued to drag the country's growth, a new report said citing, the Metropolitan Chamber of Commerce and Industry (MCCI).

The industry body said in its quarterly review that "high living costs, cautious private sector sentiment and weak industrial expansion continued to weigh on overall economic performance," according to a report from Dhaka-based The Business Standard.

Despite a considerable easing of the political and administrative instability that followed the transition period in late 2024, the economy has not gained momentum, it said.

MCCI's review said slower export expansion, subdued private investment and tight monetary policy to contain inflation has kept the economic growth modest during the January–March quarter.

"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.

The chamber credited strong remittance inflows as a factor supporting the economy through stabilising foreign exchange reserves and partially offsetting the impact of a widening trade deficit.

Another recent report said nearly 1.6 crore Bangladeshi citizens faced high levels of acute food insecurity in 2025, placing the country among the world's top 10 worst‐affected nations.

Global Report on Food Crises by UN agencies said that these ten countries are unlikely to improve in 2026 due to conflicts, climate shocks, economic instability and supply‐chain disruptions linked to the Middle East crisis.

The report also highlighted worsening conditions among forcibly displaced Myanmar nationals in two districts of Bangladesh, amid a fresh influx of Rohingya refugees, flooding and cuts to humanitarian assistance.

Over 39 million people in 32 countries faced emergency levels of food insecurity, while the number experiencing catastrophic hunger has surged ninefold since 2016.

-IANS

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