Bangladesh’s economy faced challenges in the first quarter of 2026, with issues like inflation, weak private investment, and subdued industrial activity hindering growth, as per a report by the Metropolitan Chamber of Commerce and Industry (MCCI). The MCCI’s quarterly review highlighted high living costs, cautious private sector sentiment, and weak industrial expansion as factors impacting economic performance. Despite improvements in political stability, the economy has not yet picked up momentum.
Slower export growth, low private investment, and a tight monetary policy to curb inflation have contributed to modest economic growth from January to March. The report noted that restrictive credit conditions, high borrowing costs, and inflation have dampened domestic demand, business expansion, and consumer spending during the quarter. However, strong remittance inflows have helped stabilize foreign exchange reserves and partially offset the widening trade deficit’s impact.
A recent report revealed that around 1.6 crore Bangladeshi citizens faced severe food insecurity in 2025, ranking the country among the top 10 most affected nations globally. The Global Report on Food Crises by UN agencies indicated that these countries, including Bangladesh, are unlikely to see improvements in 2026 due to various challenges like conflicts, climate shocks, and economic instability. The report also highlighted deteriorating conditions among forcibly displaced Myanmar nationals in Bangladesh, exacerbated by a fresh influx of Rohingya refugees, flooding, and reductions in humanitarian aid.
Over 39 million people across 32 countries experienced emergency levels of food insecurity, with catastrophic hunger cases increasing significantly since 2016.
