Middle East tensions may disrupt food supply chains: BB
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Rising geopolitical tensions in the Middle East may disrupt food supply chains and put pressure on Bangladesh's external balance and domestic inflation. Bangladesh's central bank reported a surplus in the current account and a stable exchange rate, but also noted weakened export performance and persistent inflationary pressures.
Bangladesh's central bank warned that Middle East tensions may disrupt food supply chains. The bank's Quarterly Report noted a surplus in the current account, driven by a surge in workers' remittances. Export performance weakened, particularly in the ready-made garments sector, due to cautious demand and rising global trade tensions. Import payments remained contained, resulting in a slight widening of the trade deficit. The financial account recorded a surplus, supported by higher foreign direct investment. Inflationary pressures persisted, with point-to-point headline inflation rising to 8.49% in December 2025.
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