(BSS) - Bangladesh`s economy continues to demonstrate resilience despite global and domestic challenges, with strong remittance inflows and steady growth in the services sector providing key support, according to the latest Asian Development Outlook (ADO) July 2026 released by the Asian Development Bank (ADB).

The ADB projected Bangladesh`s gross domestic product (GDP) to grow by 3.7 percent in fiscal year (FY) 2026 and 4.5 percent in FY2027, noting that sustained reforms and improving macroeconomic conditions are expected to strengthen the country`s growth momentum, said a ADB press release issued today.

"Bangladesh`s economy continues to show resilience amid a difficult global and domestic environment, supported by strong remittance inflows and steady services activity," said Akira Matsunaga, Officer-in-Charge for ADB`s Bangladesh Resident Mission.

"Sustained reforms to strengthen macroeconomic stability, improve the investment climate, enhance financial sector governance, and address energy and infrastructure constraints will be critical to supporting a stronger and more inclusive recovery. These reforms will also be important to crowd in private investment, create quality jobs, and strengthen economic resilience," he added.

According to the report, growth in FY2026 will be underpinned by robust remittance inflows, steady expansion of the services sector and targeted credit support for priority sectors despite a tight macro-financial environment.

The report said inflation is projected at 9.0 percent in FY2026 and is expected to ease gradually to 8.8 percent in FY2027 as economic conditions improve.

ADB said moderate inflation, simplified business regulations, improved governance, tax administration reforms and continued remittance incentives are expected to strengthen private consumption and investment in FY2027.

The report noted that the services sector will continue to support economic activity, while ongoing reforms are expected to improve the business climate and boost investor confidence over the medium term.

ADB also emphasized that continued policy reforms and prudent macroeconomic management would be crucial to sustaining growth, enhancing competitiveness and strengthening Bangladesh`s resilience against external shocks, the release added.