B Mirror Report: The General Economics Division (GED) of the Planning Commission has expressed hope that the new government will take prudent and timely measures to ensure macroeconomic stability in the country.

According to the latest Economic Update and Outlook released by the GED, the government’s key priorities should include attracting investment, creating employment opportunities, controlling inflation and strengthening investor confidence to support sustainable economic growth.

The report also emphasised the importance of improving the implementation of the Annual Development Programme (ADP), maintaining debt sustainability and ensuring consistency in economic policies to foster long-term development.

It noted that the government’s planned introduction of the Family Card programme could play an important role in strengthening social protection and supporting vulnerable groups across the country.

The report attributed the slowdown in project implementation to weak project preparation, delays in procurement, land disputes and coordination challenges among relevant agencies.

Despite various domestic challenges, Bangladesh’s external sector showed relative stability. Foreign exchange reserves stood at around $33.18 billion in January 2026, following a notable increase in December.

Remittance inflows also remained strong, reaching $3.17 billion in January, significantly higher than $2.19 billion recorded in the same month last year. The GED expects remittance inflows to increase further during Ramadan due to seasonal transfer patterns.

Merchandise exports continued to show growth, mainly driven by the ready-made garments (RMG) sector. RMG exports increased from $3.23 billion in December to $3.61 billion in January, while non-RMG exports rose to $798.9 million after experiencing a slight dip in December.

However, imports of capital machinery remained relatively low, indicating weak private investment despite an overall rise in imports.

The report also noted that inflationary pressure remained persistent at the beginning of 2026, mainly due to rising prices of fish, fruits and vegetables, although rice prices showed signs of easing.

Inflation slightly increased to 8.58 percent in January 2026, up from 8.49 percent in December 2025, reflecting continued pressure from food prices, according to the GED’s February 2026 economic outlook.

Food inflation rose to 8.29 percent in January, compared with 7.71 percent in December, while non-food inflation declined to 8.81 percent from 9.13 percent during the same period.

Food remained the largest contributor to overall inflation, accounting for 43.06 percent of headline inflation in January, compared with 40 percent in December. Housing and utilities contributed 15.05 percent, while miscellaneous goods and services accounted for 9.31 percent.

Within the food category, rice’s contribution to food inflation declined significantly as price growth slowed. The share of rice in food inflation dropped from 37.34 percent in December to 22.16 percent in January, reflecting moderation across all varieties of rice.

Overall rice inflation fell to 7.61 percent in January, down from 11.92 percent in December, with medium, coarse and fine rice all recording lower price increases.

However, the reduction in rice-driven inflation was partly offset by rising prices of vegetables, fruits and fish, which kept overall food inflation elevated.

Vegetables, which had contributed negatively to inflation in December, turned positive in January. Meanwhile, fish and dry fish remained the largest contributors to food inflation.

The GED attributed higher vegetable prices mainly to increased transportation costs and excessive profit-taking by wholesale and intermediary traders, stressing the need for improved supply chain management of essential food items.

The report also warned that rising inflation alongside stagnant wage growth is putting pressure on household purchasing power.

While inflation rose to 8.58 percent in January, wage growth remained almost unchanged at 8.08 percent, slightly higher than 8.07 percent in December. Since September 2025, inflation has consistently outpaced wage growth, widening the gap between price increases and income growth.

The GED stressed the need for coordinated wage and price management to ease pressure on living standards.

Meanwhile, the National Board of Revenue (NBR) recorded modest gains in revenue collection in January.

Against a revised monthly target of Tk 52,545 crore, the NBR collected Tk 37,033 crore, leaving a shortfall of Tk 15,512 crore.

Collections from import and export duties fell short by Tk 4,914 crore, domestic VAT by Tk 5,199 crore, and income tax and travel tax by Tk 5,399 crore compared with the revised target.

Overall, the NBR achieved 70.48 percent of its January target.

Revenue collection increased slightly from Tk 36,191 crore in December to Tk 37,033 crore in January, marking a month-to-month growth of 2.3 percent. On a year-on-year basis, revenue rose by 3.81 percent compared with January 2025.

The report also highlighted weak implementation of the Annual Development Programme (ADP) during the current fiscal year.

According to the GED, even with accelerated spending in the final months, the FY2025-26 fiscal year may record the lowest ADP implementation rate in recent years.