Bangladesh’s economic stability has improved gradually, but the overall recovery remains fragile, the Metropolitan Chamber of Commerce and Industry (MCCI) said yesterday in its quarterly review.
In its assessment of the October–December period of fiscal year 2025-26, the leading business chamber noted that strong remittance inflows helped bolster foreign exchange reserves and maintain balance of payments stability, despite a widening trade deficit.
The economy posted mixed performance during the quarter. “Growth remained modest, weighed down by weak exports, subdued private investment, and tight monetary policy. Inflation stayed elevated, prompting continued credit tightening, which further constrained business activity,” the MCCI said.
The agriculture sector, employing about 44 percent of the country’s labor force, recorded growth of 2.3% in the first quarter of FY26, down from 3.02% in the previous quarter. This slowdown came despite favorable weather conditions and government support through timely input supply and financing.
The industrial sector, the second-largest contributor to GDP after services, registered growth of 6.97% in the first quarter of FY26, a significant improvement from 2.38% in the previous quarter.
Meanwhile, the services sector expanded by 3.67% in the first quarter of FY26, up from 2.51% in the fourth quarter of FY25.
Exports declined 0.54% to $24.4 billion in July–December of FY26, compared with $24.53 billion in the same period of FY25. The chamber attributed the downturn mainly to weaker performance in both knitwear and woven garments. Despite the fall, the apparel sector continued to dominate, accounting for 80.62% of total exports.
Imports rose 5.16% to $29.13 billion in July–November of FY26, up from $27.70 billion a year earlier. Import payments in November 2025 increased 7.83% year-on-year.
Remittance inflows surged 18.05 percent during July–December of FY26 compared to the same period a year ago. The MCCI credited government measures such as higher cash incentives, streamlined regulations, and efforts to strengthen formal remittance channels for the increase.
The chamber said the economy is attempting to navigate challenges stemming from domestic political uncertainty and a volatile global environment, resulting in mixed performance across key indicators.
Looking ahead, the MCCI projected that exports, imports, and foreign exchange reserves may see improvement over the next three months, though risks to sustained recovery remain.
