Staff Reporter :
Bangladesh’s economy is beginning to show signs of recovery following a prolonged period of slowdown, with growing stability and renewed confidence across key sectors, according to leading economists and policy experts.
The observations were made during the launch of the inaugural edition of Monthly Macroeconomic Insights (MMI), a new analytical publication by the Centre for Macroeconomic Analysis (CMEA) of the Policy Research Institute of Bangladesh (PRI).
The event took place at the PRI office in Banani on Thursday, and the initiative has been developed with support from the Australian Department of Foreign Affairs and Trade (DFAT).
“The economy is on a recovery path,” said Dr Ashikur Rahman, Principal Economist at PRI, describing the current phase as “critical but hopeful.”
He commended recent government reforms-including the dissolution of the National Board of Revenue (NBR) and the promulgation of the Bank Resolution Order Ordinance 2025-as “bold and timely steps” towards enhancing institutional clarity and ensuring long-term macroeconomic stability.
Dr Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, emphasised the urgent need to rebuild the nation’s social capital alongside its economic base.
While acknowledging progress in infrastructure and financial development, he cautioned against the deterioration of social cohesion and public trust.
“We need hard reforms and honest reflection,” Dr Chowdhury asserted. “Our challenges are not only financial-we are also facing strains in our social fabric.”
Drawing lessons from the developmental trajectories of South Korea and Japan, he underscored the importance of strategic vision and consistent policy execution.
“These countries didn’t merely adopt reforms-they established long-term goals and remained committed to them. Bangladesh must do the same.”
On Bangladesh’s upcoming graduation from the Least Developed Country (LDC) category, Dr Chowdhury described the milestone as both a challenge and an opportunity.
“This transition extends beyond economic indicators. Without a coherent policy vision, reforms will not achieve their intended impact.”
He also cited high interest rates, low investor confidence, and inconsistent policies as major impediments to economic diversification.
“Why would anyone invest in capital markets when banks offer 12 per cent returns with significantly lower risk?” he queried.
Offering a more upbeat assessment, Bangladesh Bank Deputy Governor Md Habibur Rahman stated that key economic indicators are gradually stabilising. He noted improvements in the current account and balance of payments, which have helped to restore macroeconomic comfort over the past nine months.
“Exchange rate liberalisation will open new avenues for Bangladesh’s economy,” he said, adding that despite previous volatility, the nation’s economic fundamentals remain strong and resilient.
PRI Chairman Dr Zaidi Sattar echoed this cautiously optimistic sentiment, noting that macroeconomic stability has been restored in 2025 and that the country is poised for higher growth. However, he also highlighted that export potential remains constrained by a protectionist tariff regime that creates a “persistent anti-export bias” within the existing policy framework.
Clinton Pobke, Deputy Head of Mission at the Australian High Commission in Dhaka, reaffirmed Australia’s commitment to supporting Bangladesh’s economic development. He outlined a three-pronged strategy focusing on policy reform, enhanced bilateral trade and investment, and the promotion of robust public policy dialogue.
Speaking at the launch, Mr Pobke praised the analytical depth of the MMI and announced the upcoming Bangladesh-Australia Business Expo 2025, to be held in Sydney. He encouraged strong participation from both nations.
Meanwhile, Shams Mahmud, President of the Bangladesh-Thai Chamber of Commerce and Industry, raised concerns on behalf of the business community.
He noted that many entrepreneurs are struggling to remain profitable, with the bulk of financial gains accruing to banks and the NBR.
“Despite encouraging export data, the overall business climate remains difficult due to persistent inflation and elevated bank interest rates,” he remarked.
