Datanomics: New Bangladesh govt faces muted growth, high inflation

From 2019 to 2024, Bangladesh beat India in terms of per capita income

A subdued economy and elevated inflation rate stare at the new government in Bangladesh, which is set to be headed by the Bangladesh Nationalist Party (BNP) chief Tarique Rahman. The challenge of lifting the economy amid global volatility will be a prime concern for the new government. This may also tame the price pressure from the supply side.

 

Bangladesh beat India in per capita income for 6 yrs

 

For six years – 2019 to 2024 – Bangladesh beat India in per capita income. In 2025, India was ahead, beating Bangladesh’s estimates because of the latter’s declining economic growth. Projections are similar for 2026. 

 

Retail inflation at 9-year high in 2025

 

Bangladesh’s retail inflation rate increased to double digits in 2025 for the first time in at least nine years. However, the rate was already 9 per cent in 2023 and inching towards 10 per cent in 2024. The rate is projected to come down to 8.7 per cent in 2026. 

 

Marginal trade partner of India

 

Bangladesh is a marginal trade partner of India. The share of Bangladesh in India’s exports inched down to 2.48 per cent in the first eight months of the current financial year, the lowest in at least nine years. Similarly, the share of Bangladesh in India’s imports stood at just 0.23 per cent, the lowest in seven years. ($ bn)