Economy stabilises, yet inflation hits poorest

Staff Reporter :

The Centre for Policy Dialogue (CPD) has stated that Bangladesh narrowly averted a major economic crisis following the interim government’s assumption of power, though persistently high inflation continues to impact low- and fixed-income households.

Speaking at a dialogue titled “365 Days of the Interim Government” at Dhaka’s Lakeshore Hotel, CPD Executive Director Fahmida Khatun described economic stabilisation and recovery as an urgent priority when the interim administration took office.

She acknowledged that while the economy inherited was fragile and experiencing slow growth, gradual stabilisation has been achieved and key risks have been mitigated – a notable success.

However, Ms Khatun cautioned that these improvements have yet to reach the poorest communities, who remain burdened by rising living costs.
With national elections scheduled for February 2026, the CPD observed that the interim government is unlikely to introduce significant new reforms, urging instead a focus on consolidating current progress and addressing underlying structural weaknesses.

Using a traffic-light scorecard to evaluate 38 economic and governance indicators, the think-tank rated nine areas as “green” for positive progress, while others were marked “yellow” or “red,” indicating partial or insufficient advancement.

Despite several reform proposals – including those from the white paper panel and a special task force – no concrete implementation steps have been taken. Ms Khatun warned that delays in reform risk undermining the stability achieved so far.

The CPD’s findings highlight that while the immediate economic threat has been averted, challenges remain in curbing inflation, deepening institutional reforms, and ensuring recovery efforts benefit all sectors of society, particularly the most vulnerable.