WEF identifies five major economic risks for BD in 2026
Staff Reporter :
Bangladesh’s economy faces five key risks in 2026, led by the rise of crime and illicit financial activities, according to the Global Risks Report 2026 of the World Economic Forum (WEF).
The report warns that these domestic and external challenges could put significant pressure on economic stability.
Extortion, money laundering and other illegal activities were identified as the most serious threats, as they weaken investor confidence and undermine good governance. Business leaders surveyed by the WEF ranked this risk highest.
Geoeconomic conflict was cited as the second major risk, with sanctions, tariffs and trade restrictions disrupting global commerce. Such developments pose particular challenges for export-dependent economies like Bangladesh.
High inflation ranked third, with the country experiencing sustained price pressures for nearly four years.
In 2025, average inflation stood at 8.77 percent, eroding purchasing power and raising living costs.
High inflation ranks as the third most critical risk. Bangladesh has experienced elevated inflationary pressure for nearly four consecutive years, eroding purchasing power and increasing the cost of living.
In 2025, the country’s average inflation rate stood at 8.77 percent, placing sustained strain on households and complicating policy efforts to stabilise prices while supporting growth.
The report identifies slowing economic growth as the fourth key risk. Concerns over stagnation or even recession have been flagged, with warnings that weaker growth could limit job creation, reduce private investment and slow income expansion.
Such a slowdown would intensify existing structural challenges and hinder long-term development goals.
Debt pressure completes the list of five major risks. This includes rising government, corporate and household debt.
Analysts point out that debt servicing costs are consuming a growing share of the national budget, narrowing fiscal space and increasing pressure on public finances.
If unmanaged, rising debt could restrict future development spending and complicate revenue management.
In Bangladesh, the WEF survey was carried out by the Center for Policy Dialogue (CPD), a partner organisation of the forum.
CPD Research Director Khandaker Golam Moazzem said the survey drew on responses from top executives of 102 organisations between May and July 2025.
Respondents were asked to select the most significant risks for the next two years from a list of 34 potential threats.
Moazzem noted that criminal activity was increasing during the survey period, explaining its ranking as the top concern. While crime has since eased somewhat, geopolitical tensions have intensified.
Although inflation has shown signs of moderation, the misuse of artificial intelligence is emerging as a new source of risk.
Globally, the WEF report identifies geopolitical conflict as the single biggest risk in 2026, followed by state-based conflicts.
Extreme weather, social polarisation, misinformation and fears of global recession and persistent inflation are also adding to uncertainty.
While environmental risks appear to have eased slightly in the short term, the report cautions that they remain serious long-term threats.