Business Report :
The Bangladesh economy continues to demonstrate progress toward stabilization, supported by a combination of decisive policy measures and resilient external sector performance, observed Policy Research Institute (PRI) of Bangladesh.
The think tank warned that the country’s long-term growth prospects are still constrained by entrenched institutional weaknesses, low investment, and widening inequality.
The Centre for Macroeconomic Analysis (CMEA) at PRI, in collaboration with the Australian Government’s Department of Foreign Affairs and Trade (DFAT), on Wednesday unveiled the MMI at an event at PRI conference room in the city.
The observation came at the launch of PRI’s Monthly Macroeconomic Insights for the August-September 2025 period, held at the institute’s office in Dhaka.
Dr. Monzur Hossain, Member (Secretary) of General Economics Division (GED), Planning Commission, attended the event as the chief guest.
Dr. Zaidi Sattar, PRI Chairman, presided over the event while Dr. Ashikur Rahman, Principal Economist of PRI, delivered the Keynote Presentation.
Growth slows, pressure persists
According to the report, Bangladesh’s GDP growth fell to 3.97 percent in FY2025, the lowest since FY2020. The slowdown was attributed to weak private investment, policy uncertainty, and stress in the financial sector.
PRI Chairman Zaidi Sattar said while there were some encouraging signs such as improvements in remittance inflows and a modest rebound in foreign exchange reserves “the overall economic situation remains under pressure.”
“This is not a recovery that benefits everyone,” Sattar warned. “We are seeing rising inequality, falling real wages, and growing distress in the banking sector.”
High costs for the poor
Echoing his concerns, PRI Principal Economist Ashikur Rahman said that the recent stabilization came at a steep social cost.
“Some stability has returned to the macroeconomic front, but it has come at a high cost, particularly for the poor and lower middle class,” Rahman said.
He pointed out that inflation in food and essentials continues to erode purchasing power, while job creation remains weak. “Without fixing our institutions and restoring financial discipline, meaningful growth will remain out of reach.”
Structural and governance challenges
Participants identified several deep-seated problems that constrain Bangladesh’s potential, including the limited independence of the central bank, bad loans, poor governance, and political interference in the financial sector.
Experts also criticized inefficient social protection schemes, saying many programs fail to reach the most vulnerable. In addition, the country’s tax structure was described as “inequitable,” as compliant businesses bear heavier burdens while large portions of the economy remain untaxed.
Call for bold reforms
Speakers stressed that small, piecemeal measures would not be enough to restore sustainable growth. They called for comprehensive reforms, including stronger financial governance, greater transparency, and more investment in productive sectors such as manufacturing, exports, and technology.
Dr Monzur Hossain, member (secretary) of the General Economics Division (GED) of the Planning Commission, stressed that investment depends on the broader economic ecosystem and cautioned that high interest rates, while helping to contain inflation, may be discouraging private investment.
