FROM PAGE B1

In the report’s foreword, BB Governor Md Mostaqur Rahman said inflation stood at 9.42 percent in May 2026, up from 8.48 percent in June 2025.

He said Bangladesh’s economy had shown resilient signs of recovery in FY26 despite domestic structural challenges and dual global headwinds, including escalating geopolitical tensions and reciprocal tariff measures.

The review noted that the global economy performed better than expected in 2025, supported by strong demand, resilient trade, fiscal stimulus in major economies, and increased investment in technology and artificial intelligence.

However, it cautioned that growth prospects remain constrained by weak private investment, slowing export momentum, and external headwinds.

As per the report, geopolitical tensions in the Middle East continue to pose significant short-term risks. Global inflation is also expected to edge up in 2026 due to disruptions in energy supplies, higher commodity prices, renewed exchange-rate pressures, and rising transportation costs.

As a commodity-importing economy, it said, Bangladesh remains exposed to global energy and food price shocks that could push up import costs and strain the external sector.

Despite these challenges, BB remains optimistic that government social protection programmes, continued support for productive sectors, and its Tk 60,000 crore stimulus package would boost domestic consumption, encourage private investment, and support exports.

The central bank said it would continue to closely monitor both domestic and external developments to maintain price stability and safeguard macroeconomic stability.

The governor expects Bangladesh’s economic outlook to improve significantly, supported by the successful implementation of ongoing initiatives, structural and institutional reforms undertaken by the current government, and well-coordinated monetary and fiscal policies.