DHAKA, Jan. 25 (Xinhua) -- Bangladesh's economy is projected to grow at around 5 percent in 2026, balancing moderate expansion with persistent structural challenges, according to the Bangladeshi Planning Ministry's Economic Update & Outlook (January 2026) released Sunday.

The report, prepared by the General Economics Division of the Bangladesh Planning Commission, said sustaining growth will require stronger governance, consistent policies, and increased investment in skills and technology to reduce the economy's over-reliance on the ready-made garment sector.

It emphasized that political stability, institutional reforms, and technological adoption are critical as Bangladesh approaches graduation from least developed country status and navigates a democratic transition.

The report warns that uncertainty among economic elites and institutional weaknesses remain key risks to long-term growth.

With progress toward the Sustainable Development Goals remaining slow, the report underscores the need for evidence-based policymaking supported by village-level interventions to achieve sustainable local development outcomes. ■