Economy faces continuity of crisis

Staff Reporter :

Former Adviser and eminent economist Hossain Zillur Rahman has warned that Bangladesh’s economy is facing a “continuity of crisis,” urging policymakers to prioritise citizens’ well-being alongside traditional macroeconomic indicators.

Hossain Zillur Rahman, who is also Chairman of the Power and Participation Research Centre (PPRC), made the remarks while presenting PPRC’s latest research report, State of the Real Economy: Household Realities and Policy Options Towards Strengthening Economic Democracy, at a dissemination event in Dhaka on Monday.

He noted that even a year after the July mass uprising, and on the verge of graduating from Least Developed Country (LDC) status,
Bangladesh continues to grapple with economic challenges reminiscent of the Covid-19 pandemic, the high inflation of 2023, and ongoing political uncertainties in 2024-25.

According to the study, poverty in Bangladesh has risen by nearly 10 per cent, reversing earlier gains. The report also found that roughly 18 per cent of households, though above the poverty line, remain at extreme risk of falling back into poverty.

The report identified five key vulnerabilities affecting households such as chronic diseases: 51 per cent of households have at least one member with a long-term health condition, female-headed households: Nearly 24 per cent of ultra-poor households are headed by women, making them especially vulnerable, debt burden: Among the poorest 40 per cent of families, debts are at least twice their savings, food insecurity: 8.8 per cent of ultra-poor households were unable to afford even one meal in the past month and stalled SDG progress: 36 per cent of households still rely on unhygienic toilets, reflecting slow improvements in sanitation.

Employment was described as being in an “emergency” state. Although 38 per cent of respondents reported being employed, many work fewer than 40 hours per week, indicating widespread underemployment. Female labour force participation remains low at 26 per cent, and 45 per cent of workers are self-employed, underscoring persistent job insecurity.

Despite these challenges, Hossain Zillur Rahman highlighted several positive indicators. He pointed to remittances, growing digital readiness, and a large domestic consumer market as sources of resilience. Approximately 74 per cent of families own smartphones, and the domestic market is valued at nearly $211 billion.

The report offered a series of policy recommendations short term: Implement social protection programmes to reduce healthcare costs for chronic illnesses, medium term: Establish a public-private task force to address the employment crisis and long term: Regularly collect and analyse socioeconomic data, and incorporate citizens’ perspectives into economic planning, focusing on equity, justice, and well-being alongside GDP growth.

“The reality is challenging, but urgent action is essential,” Hossain Zillur Rahman emphasised.