Bangladesh Economy Faces Inflation Pressure and Slow Growth

Bangladesh's economy is under mounting pressure as the country prepares for winter, when food prices could rise further. Higher global oil prices and increased agricultural costs are the main reasons behind the warning, which has been raised by economists and development experts.

According to economists, families struggling with financial stress may be compelled to sell assets such as gold and jewellery or borrow money to meet basic needs. Such pressures are expected to affect not only the poor recorded in official data but also many households outside those statistics.

AKM Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS), said at a civil society discussion that policymakers should plan for a possible deterioration in conditions. He noted that oil price increases have pushed up the costs of fertiliser, pesticides and other farm resources, nearly doubling agricultural production costs.

He said the public food distribution system should be reviewed, with special emphasis on rural families whose incomes fluctuate with the seasons. Official figures show that 51 per cent of rural households are indebted, while the figures are 32 per cent in metropolitan cities and 40 per cent in other urban areas.

Haque argued that focusing support only on cities would leave rural households without help. He also called for stronger market oversight and supply chain improvements, saying a price commission alone cannot solve problems if the market itself is not working effectively.

Syma Haque Bidisha, an economics professor at the University of Dhaka, emphasised that without reducing inequality and ensuring participation from all groups, food security cannot be guaranteed and common people will not share in development gains. She also urged minimum wage arrangements for workers beyond the textile sector and called for greater focus on informal sector labourers.

Another recent report says the economy is dealing with slow growth, a widening trade deficit and serious weaknesses in the banking sector at the same time. World Bank data shows growth fell to 3.4 per cent in fiscal 2025-26 and is expected to stay at that level in fiscal 2026-27, well below the government's target of 6.5 per cent.