BB projects lower GDP growth than govt target

Bangladesh Bank has projected that the country's economic growth in the next fiscal year will be 6.1 percent, while the government has set a target of 6.5 percent.

Bangladesh’s economic growth remained subdued throughout the period, reflecting the lingering effects of supply chain disruptions, slow private investment growth and the political unrest that began in mid-2024, the central bank said in its Monetary Policy Statement for fiscal year 2026-27.

Provisional estimates compiled by the Bangladesh Bureau of Statistics (BBS) indicate a real GDP growth rate of 4.14 percent for FY26, representing a modest recovery from the 3.49 percent growth recorded in FY25.

The new government has adopted a growth-supportive but fiscally prudent expansionary fiscal stance for FY27, focused on development expenditure and to be achieved through annual development plan prioritisation, tax reforms, expenditure rationalisation, targeted subsidies and social protection programmes, according to the Monetary Policy Statement.

The government has adopted a comprehensive economic strategy focused on restoring macroeconomic stability and advancing structural reforms, with the objective of laying the foundation for investment-led growth.

The first phase focuses on restoring macroeconomic stability and protecting vulnerable groups from the immediate effects of economic shocks over a one-year horizon, the Monetary Policy Statement said.

Key priorities include strengthening social protection programmes, improving public service delivery, simplifying business procedures and enhancing coordination among public institutions, it added.