High inflation, stagnant investment putting pressure on economy: DCCI
High inflation, stagnation in investment, pressure on foreign exchange reserves, energy shortage and increased production costs are putting pressure on the country’s economy, according to the Dhaka Chamber of Commerce and Industry (DCCI).
Alongside, consumers have sharply reduced spending as the cost of living continues to rise, putting pressure on retailers, transport operators and other service providers, DCCI said at a seminar titled ‘Economic Position Index (EPI): Quarterly Macroeconomic State of Dhaka’ in the capital on Saturday.
DCCI publishes the EPI to address the lack of adequate information regarding business, trade, investment planning and economic forecasting.
Noted Economist and Chairman of Policy Research Institute of Bangladesh (PRI) Dr. Zaidi Sattar, Professor Mizanur Rahman of Business Studies of Dhaka University, Professor M Niaz Asadullah of Economics department of DU, Additional Secretary of Ministry of Commerce Shibir Bicitro Barua; International Trade Expert Nesar Ahmed, former DG of BIDA Ariful Hoque, DG of International Trade, Investment & Technology Wing of Ministry of Foreign Affairs Dr. Syed Muntasir Mamun, and Senior Private Sector Specialist of IFC Miah Rahmat Ali, took part in the seminar.
According to the report, higher rents, utility bills and fuel prices are eating away at already thin profit margins.
Small and medium-sized enterprises are feeling the pressure most as they struggle to manage higher operating expenses without losing customers.
The EPI, calculated as the geometric mean of three sectoral scores, showed a sharp divergence across sectors.
Agriculture topped the index with a high score of 0.80, driven by significant growth in crop and fish production, though livestock output recorded a marginal 4.8 percent decline due to seasonal factors.
The services sector scored 0.47, reflecting moderate improvement, while manufacturing registered a low score of 0.33, indicating severely weak industrial activity.
“Moderate improvement indicates a visible advancement in economic activities in Dhaka with no sign of heavy stagnation,” the report stated. “The economy heads towards a positive trend in the last quarter of 2025.”
However, DCCI’s strategic assessment struck a cautionary note, describing the economy as “consumption-led rather than production-led” and “stable on the surface but deeply imbalanced underneath.”
In his welcome speech, DCCI President Taskeen Ahmed said the country’s economy is passing a challenging time. There has been pressure in the macroeconomy due to high inflation, reserve crisis, stagnant investment, energy uncertainty and lower employment opportunities.
While presenting the report AKM Asaduzzaman Patwary , acting secretary general of the DCCI, said “Inflation has cornered consumers and weakened purchasing power.”
