Bangladesh Economy to Grow 4.6%, Inflation to Ease to 7.1% in FY26: UN Report

According to a recent United Nations report, Bangladesh's economy is expected to grow by 4.6% in the current fiscal year (FY26), a slight improvement from the estimated 4.1% growth in the previous year. The report, released on January 8, 2026, also projects a further increase in GDP growth to 5.4% in FY27, signaling a positive trend for the nation’s economy.

However, the growth forecast still falls short of pre-pandemic levels, with inflation continuing to be a concern. Inflation has remained high, surpassing 8% for the past six months. The report predicts some relief, forecasting inflation to ease to 7.1% in FY26 and further decrease to 6% in FY27.
 

The UN report aligns with growth projections from other international organizations, including the Asian Development Bank (ADB), World Bank, and International Monetary Fund (IMF). ADB projected a 5% growth for Bangladesh in FY26, while the World Bank expects a growth rate of 4.8%. Similarly, the IMF forecast a growth of 4.9% for FY26.
 

Despite the international projections, Bangladesh’s interim government has set a higher GDP growth target of 5.5% for FY26, aiming to exceed these estimates.

The report also highlighted economic growth in South Asia, which is expected to remain resilient, with regional growth easing from 5.9% in 2025 to 5.6% in 2026, before recovering to 5.9% in 2027.

Globally, economic growth is expected to slow to 2.7% in 2026, below the pre-pandemic average of 3.2%. UN Secretary-General António Guterres expressed concerns about the combination of economic, geopolitical, and technological tensions reshaping the global landscape, which continues to impact developing economies.