Reza Mahmud :
Inflationary pressures, lack of investment confidence, and maintaining foreign currency reserves are the major economic challenges facing Bangladesh in the new year, experts have said.
They noted that the ongoing energy crisis, inflation, and declining global demand for key exports, such as garments, are creating a tough environment for local businesses.
Additionally, foreign investors, concerned by political instability, are likely to adopt a cautious approach, especially after the unrest in RMG factories and as they assess the interim government’s progress on law and order.
The country underwent significant upheaval following the changes on August 5 last year, which shook not only the political landscape but also the national economy. Economists stated that while the interim government’s efforts to stabilise the economy could take time, their long-term reforms in sectors like business, trade, and industry aim to boost the national economy. However, short-term provisions for the welfare of the people are also urgently needed.
Dr Khondaker Golam Moazzem, an eminent economist and Research Director at the Centre for Policy Dialogue (CPD), told The New Nation, “The interim government has taken several steps to steer the economy in the right direction. The Bangladesh Bank governor has implemented strong measures to address banking sector issues, and notable reforms have also been seen in the energy sector.”
Economists agree that while immediate successes are not visible, continued efforts could yield long-term benefits. Dr. Moazzem identified the primary challenge as restoring the national economy’s momentum from the brink of crisis.
He further noted that both foreign and domestic investments have stalled due to a lack of trust. “A long-term, elected government may be needed to restore investor confidence,” Dr. Moazzem added.
Reducing the cost of living remains a critical challenge for the common people, while maintaining stability in foreign trade and foreign loan commitments is another concern for the economy in 2025.
According to data from the Economic Relations Division (ERD), foreign loan commitments and disbursements to Bangladesh have significantly decreased, while loan repayments have risen during the first five months of the 2024-25 fiscal year.
Professor Muinul Islam, another prominent economist, told The New Nation, “The three main challenges are managing inflation, stabilising the dollar price – which Bangladesh Bank has initiated well – and continuing to build foreign currency reserves.”
Despite the measures taken, Professor Islam pointed out that no significant progress has been made in curbing the rise in essential prices, which is crucial for the welfare of the population.
Former Commerce Minister and BNP Standing Committee Member Amir Khosru Mahmud Chowdhury also weighed in, stating, “Both domestic and foreign investors are waiting for an elected government. Without one, large investments are unlikely to materialise.” He stressed that investors rely on an elected government with a long-term commitment to ensuring law and order and the necessary infrastructure.
