Bangladesh's economy was showing signs of stabilisation during April-June of last fiscal year but macroeconomic stress lengthened its shadows, according to just-revealed review findings amid some continued ills on the economic front.
Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka made the mixed observations in its reappraisal report published Tuesday.
"Overall, the review period reflected a gradual macroeconomic stabilisation, supported particularly by strong remittances and improved foreign-exchange reserves," the chamber said in its review of economic situation found during the fourth quarter of FY26.
"Nevertheless, high inflation, subdued investment and credit growth, weak export performance, fiscal constraints, and vulnerabilities in the banking sector remained significant challenges," it has noted.
The elite trade body, as such, suggests prioritising policies to consolidate external-sector stability while bringing inflation down and creating conditions for stronger private investment and sustainable growth.
The chamber observed that during the April-June period, the country's economy showed signs of gradual stabilisation, although overall economic activity remained subdued.
The gross domestic product (GDP) growth for the past fiscal year was provisionally estimated at 4.14 per cent, up from 3.49 per cent in FY25. Inflation, however, remained elevated, with headline inflation at 9.16 per cent in June, continuing to put pressure on household purchasing power and the cost of living. South Asians & Diaspora
The external sector performed relatively well, supported by strong remittance inflows and improved foreign-exchange reserves. Remittances remained robust during the quarter, while reserves strengthened significantly by the end of June, providing greater stability for the balance of payments and the foreign-exchange market.
At the same time, the MCCI says, the economy continued to face important structural and macroeconomic challenges. Export growth remained weak despite a rebound in June, while private investment, credit growth and domestic demand were constrained by high interest rates and economic uncertainty.
The banking sector also remained under pressure, alongside fiscal constraints and elevated inflation.
"Overall, the quarter reflected a transition from macroeconomic adjustment toward gradual recovery, with improved external-sector resilience being a key positive development," says the chamber.
"Going forward, sustaining price stability, strengthening the financial sector, promoting private investment and exports, and maintaining external-sector stability will be critical for achieving stronger and more inclusive economic growth," the economic-review report reads.
The MCCI mentioned that domestic credit grew by 10.57 per cent at the end of June 2026, while a lower growth rate of 7.98 per cent was recorded at the end of June 2025.
However, private-sector credit registered a record lower growth of 4.47 per cent during the period between June 2026 and June 2025, compared with a higher growth of 6.49 per cent a year back. Private-sector credit growth was below the central bank's revised projection of 8.50 per cent in June 2026.
Public-sector credit, on the other hand, recorded a higher growth of 30.43 per cent at the end of June 2026, compared with a lower growth of 13.15 per cent at the end of June 2025. June's growth was higher compared with BB's revised projection of 21.60 per cent in June 2026.
The trade body has further said in FY26, the NBR remained behind its strategically revised target by Tk 875.27 billion or 17.40 per cent. However, despite missing the target, all three wings of the revenue board showed moderate growth in FY26 compared to the previous fiscal year.
The ADP implementation was the lowest in a decade, with government agencies spending only 67.52 per cent of the total allocation, compared to the previous year's slightly higher rate of 68.18 per cent.
The country's merchandise-export earnings rebounded strongly in June 2026, although overall export earnings for FY26 experienced a small growth.
The increase in imports could mostly be attributed to the stability on the foreign-exchange market which resulted in significant rise in intermediate-goods import, especially goods related to readymade garments.
The inflow of remittance in FY26 boasts a record, reaching $35.59 billion, providing some relief amid economic strains, the MCCI has observed.
