Bangladesh economy is showing signs of stabilization. Inflation and banking risks remain major challenges.

Bangladesh’s economy showed signs of stabilizing in April through June, but high inflation, weak investment, and banking-sector vulnerabilities continued to weigh on growth, the Metropolitan Chamber of Commerce and Industry (MCCI) said Tuesday.

Provisional Bangladesh Bureau of Statistics (BBS) estimates put fiscal 2025-26 gross domestic product (GDP) growth at 4.14%, up from 3.49% a year earlier.

Inflation remained a major concern, reaching 9.16% in June, while food inflation eased to 8.60%.

Bangladesh received $9.38 billion in remittances during the quarter, helping gross foreign exchange reserves rise to $37.58 billion at the end of June from $34.48 billion in May.

Exports remained weak overall. Fiscal-year shipments totaled $48.38 billion, only slightly above $48.3 billion the previous year, despite exports rebounding to $4.19 billion in June.