Bangladesh’s economy remains resilient despite global and domestic headwinds, supported by strong remittance inflows and steady expansion in the services sector, according to the Asian Development Outlook (ADO) July 2026 released by the Asian Development Bank (ADB).

The ADB forecasts Bangladesh’s gross domestic product (GDP) to grow by 3.7% in fiscal year (FY) 2026, with growth expected to accelerate to 4.5% in FY2027 as macroeconomic conditions improve and reform efforts gain traction.

“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 stressed that sustained reforms to strengthen macroeconomic stability, improve the investment climate, enhance financial sector governance, and address energy and infrastructure constraints would be essential to support a stronger and more inclusive recovery.

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 industries despite a tight macro-financial environment.

Inflation is projected to average 9.0% in FY2026 before easing slightly to 8.8% in FY2027 as economic conditions improve.

The ADB said moderate inflation, simplified business regulations, improved governance, tax administration reforms, and continued remittance incentives 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 reforms are expected to improve the business environment and boost investor confidence over the medium term.

The ADB emphasized that continued policy reforms and prudent macroeconomic management will be critical to sustaining growth, enhancing competitiveness, and strengthening Bangladesh’s resilience against external economic shocks.