News Desk :
Bangladesh’s economic growth has slowed in recent months due to high interest rates, expensive energy supply and political uncertainty, according to trade body leaders and economists.
They highlighted that costly funding and inadequate energy supply are hindering business expansion despite the country’s large workforce, report UNB.
Zakir Hossain Nayan, the Convener of the Anti-Discrimination Business Forum at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told UNB that the domestic business sector is struggling due to high interest rates and the rising exchange rate of the US dollar.
“People have reduced their consumption due to high inflation within their income limitations. As a result, Bangladesh’s internal trade suffered severely in July and August last year, though it is now slowly gaining pace,” he said.
He explained that banks are facing a liquidity crisis, as the past government and their affiliated businesses misused banking policies to secure large loans.
This has left over a dozen banks unable to make new investments, while others remain cautious about injecting fresh funds into businesses. Given these conditions, he said that business growth will remain weak in the second half of 2024.
He, however, said that the situation is improving as the government has increased money flow in the banking sector, the dollar crisis has eased, and inflation is trending downward.
He also mentioned that the export sector remains resilient despite challenges such as unrest in the garment sector, with export orders increasing by 10–15 per cent in 2025.
