Dhaka, Sep 30 (V7N) – The Asian Development Bank (ADB) has forecast that Bangladesh’s economy will grow by 5.1% in the current fiscal year 2025-26, up from 4% in the previous year, according to the September edition of its Asian Development Outlook.

The report noted that while ready-made garment (RMG) exports remain stable, domestic demand has slowed due to a combination of factors — political transitions, frequent flooding, labor unrest in the industrial sector, and persistently high inflation. These four issues are weighing on the country’s overall growth momentum.

On the positive side, the ADB expects consumer spending to rise, supported by an increase in remittance inflows and election-related expenditures, which are likely to stimulate short-term demand.

Speaking on the findings, ADB Country Director Ho Yun Jeong said the impact of recent U.S. tariffs on Bangladesh’s trade is still unclear, while concerns remain over the country’s weak banking sector.

Looking ahead, the ADB warned that several risks persist for FY2026. These include global trade uncertainties, structural weaknesses in the banking sector, and hesitation in policy implementation, which could undermine growth prospects.

END/SMA/AJ