Ahammad Parvej Khan
The country’s Private-sector credit growth declined to a historic low of 6.29% in September 2025, underscoring weak investment appetite and fading business confidence, according to the MCCI Q-1 review of economic situation of FY 26 in Bangladesh, released on Monday.
Market analysts note that the overall economic activities have remained subdued in the aftermath of political uncertainties, leading to weaker demand and reduced investment. Even so, several sectors recorded year-on-year improvements during the quarter under review, supported by easing inflationary pressures and greater stability in the foreign exchange market,
They said the Bangladesh Bank’s tight monetary and fiscal stance, in place since August of last year, has further dampened domestic demand.
Referring to the recent Bangladesh Bureau of Statistics (BBS) data, the MCCI review said that GDP growth slowed to 3.35% in the fourth quarter, down from 4.86% in the previous quarter (Q3 of FY25).
Although growth remains sluggish, the current review period (Q1 of FY26) indicates some signs of recovery.
Improvements in exports, imports, inflation, and remittances have helped stabilize foreign-currency reserves and provided some support to the broader economy.
Export earnings in July-September of FY26 increased by 5.25% to US$12.27 billion from US$11.66 billion in July-September of FY25. This surge was mainly fueled as usual by the robust performance of both knitwear and woven garments.
Export earnings in July-September of FY26, however, achieved 22.31% against the yearly target of US$55.00 billion. On the other hand, export earnings in September 2025, the last month of the review quarter, decreased by 5.10%.
Total value of imports (c&f) in July-September of FY26 grew by 9.49% to US$17.71 billion from US$16.17 billion in July-September of FY25. On the other hand, import payments in September 2025, the last month of the review period, increased by 9.92% to US$6.21 billion from US$5.65 billion in the corresponding month of the previous fiscal year.
Remittances inflow in September 2025, the last month of the review period, registered US$2,685.88 million, which was 11.72% higher compared to the same month of the previous fiscal year (US$2,404.11 million).
According to the latest data of BB’s balance of payments, the net inflows of foreign direct investment (FDI) in the first three months of the present fiscal year (July-September of FY26) increased, year-on-year, by 178.95 per cent to US$318 million from US$114 million. FDI inflow in Bangladesh is low compared to that in many other countries at similar level of development.
Country’s current account turned negative in July-September of FY26 due to a widening trade deficit driven by higher imports, despite strong remittance inflows.Meanwhile, the financial account surplus exceeded US$1.60 billion in July-September of FY26, driven by rising trade credit and medium- to long-term loans.
