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For a sustainable and robust economic recovery, it will be crucial to stimulate private investment, strike a balance between containing inflation, and foster an environment conducive to business growth, the GED said.

The report added that deposit growth showed a moderating but fluctuating trend in the early months of the current fiscal year (FY26), supported by reforms aimed at restoring public confidence.

“The subdued deposit growth is primarily influenced by high inflation, which continues to erode real disposable income and limit the capacity for household savings,” it said.

Strong remittance inflows and the government’s move to channel cash transfers through banks also contributed to the increase.

The GED report, citing the recent drop in rice prices, slowdown in exports, stability in the exchange rate amid rising foreign exchange reserves, and increased revenue collection, offered “cautious optimism for the coming months.”

“As the election date approaches rapidly, the economy will experience some election-related activities in the coming months, which will boost confidence among economic actors and investors,” it said.