22/06/2026
Bangladesh’s latest macroeconomic indicators show stronger growth momentum but mounting financial sector risks. The country’s foreign exchange reserve rose to USD 31.24 billion, strengthening external buffers, while the Bangladeshi Taka remained stable at 122.75. The call money rate increased slightly to 9.94% from 9.89%, indicating mild tightening in short-term liquidity conditions.
The external sector remained one of the brighter spots. Remittance inflows grew 15.48% year-on-year to USD 3.43 billion in May, continuing to support foreign exchange inflows and domestic consumption. Exports surged 33.95% year-on-year to USD 3.63 billion, signaling a strong rebound in external demand and export earnings. Imports also remained elevated at USD 6.67 billion, reflecting stronger domestic demand and industrial activity. Despite higher imports, the current account deficit improved to USD -1.072 billion during July–April FY26, compared to -1.635 billion in the same period of FY25.
Investment indicators remained weak but less alarming than a year ago. Capital machinery imports contracted by 3.07% during July–March FY26, a substantial improvement from the -26.02% contraction recorded in the same period last year, suggesting that the investment downturn is stabilizing even if a full recovery has yet to materialize.
On the inflation front, CPI increased to 9.42% in May from 9.04%, indicating renewed inflationary pressure and continued strain on household purchasing power. Fiscal performance softened, with April tax revenue growth slowing to 6.71%, compared to the exceptionally strong 27.76% growth recorded a year earlier, highlighting uneven revenue collection momentum.
Monetary indicators continued to diverge. M2 growth accelerated to 11.45%, reflecting abundant liquidity in the banking system, while private sector credit growth slowed further to just 4.75%, indicating weak business borrowing and subdued investment demand despite higher liquidity availability.
Overall, GDP growth improved to 4.14% in FY26 from 3.49% in FY25, pointing to a gradual economic recovery. However, banking sector vulnerabilities intensified as classified loans rose to 32.26% by March from 30.60% in December, reversing earlier improvements and highlighting growing asset-quality concerns that continue to pose significant risks to long-term financial stability under the supervision of Bangladesh Bank.