Bangladesh’s economy faces new challenges: Experts
Staff Reporter :
The country’s economy is going through multiple crises. For several years, Bangladesh has been grappling with record-high inflation, imbalance in external accounts, dollar shortages, depletion of foreign exchange reserves, an investment slump, revenue shortfalls, rising debt, increasing non-performing loans and corruption in the banking sector, as well as looting and mismanagement in the power and energy sectors. Bangladesh is set to receive its final recognition as a developing country in November next year after graduating from Least Developed Country (LDC) status. While this transition will bring opportunities, it will also create new challenges.
Talking with journalists recently, BNP Acting Chairman’s Adviser and economist Dr. Mahdi Amin, economic analyst and Labaid Cancer Hospital Managing Director Sakif Shamim, and Dhaka University Pro-Vice-Chancellor and economics professor Dr. Sayema Haque Bidisha spoke to the media about Bangladesh’s economic challenges, crises, future prospects, and required actions.
They emphasized that formulating appropriate action plans and implementing them within a set timeframe is indispensable. Key challenges include policy support and reform, financing, logistics development, skilled manpower, and financial sector reform. A business-friendly environment will boost export success, while high tariffs hinder business and investment-making supportive revenue policies essential. They stressed the need for low-interest financing for export-oriented industries and a supportive foreign exchange rate. LDC graduation will bring both challenges and opportunities, but Bangladesh must prepare quickly.
Dr. Mahdi Amin said BNP’s proposed 31-point reform agenda contains a comprehensive roadmap for economic liberalization and transparency, which can reduce bureaucratic complexity and create an investment-friendly environment. He said, the 31-point agenda also focuses on employment-oriented education for youth, promoting technical and vocational education so young people can become entrepreneurs instead of only job seekers.
Dr. Sayema Haque Bidisha said that Bangladesh’s economy is at a crossroads. To restore stability, deep structural reforms are needed in banking, revenue policy, and employment rather than temporary measures. She identified high inflation as the biggest challenge and said monetary policy alone cannot control it; effective market monitoring and curbing middlemen’s manipulation are essential, as artificial shortages often worsen people’s living conditions.
Entrepreneur Sakif Shamim said Bangladesh’s development narrative now stands at a complex turning point where traditional success indicators no longer align with harsh future realities. Despite major infrastructure improvements over the past decade, deep-rooted economic vulnerabilities can no longer be ignored.
Amid global instability and domestic constraints in 2025, development must be assessed not just through concrete structures but through living standards and security. Parallel to visible progress, unemployment, skills gaps, and rising living costs are pushing the nation toward an uncertain future, demanding bold reforms beyond conventional thinking.
He cited the Asian Development Bank’s projection that GDP growth may fall to 3.9 percent in FY2025, exposing structural weaknesses that directly undermine job creation. Although official data shows over 2.6 million unemployed, the real figure is likely higher. Each year, around 2.2 million young people enter the labor market, many without access to quality jobs. Alarmingly, youth unemployment among the educated is nearly 29 percent, highlighting the gap between higher education curricula and labor market demands.
Shamim warned that in the era of the Fourth Industrial Revolution, youth remain stuck with outdated skills, failing to meet both global and domestic private-sector needs. Low private-sector credit growth and investor confidence have stalled industrialization and job creation, risking the transformation of demographic advantage into national crisis.
Experts said, many of the existing benefits will no longer be available, and Bangladesh will have to compete with stronger economies. In this context, export diversification beyond the garment sector and ensuring product quality are essential. Similarly, increasing remittances will require a greater focus on exporting skilled manpower.
Bangladesh has significant potential in its large youth population, export sector, remittances, and digital transformation. To harness this, production and export diversification are necessary, along with ensuring good governance and policy stability. Technology and innovation must become the driving forces of the economy.