Inflation, jobs top economic concerns
Persistent inflation is putting pressure on people’s purchasing power, while Bangladesh faces the wider challenge of boosting investment and employment, rebuilding confidence in the banking sector and raising revenue collection, Finance Minister Amir Khosru Mahmud Chowdhury said on Saturday.
“Bangladesh was at an important juncture, with inflation putting pressure on people’s purchasing power and tax collection remaining well below what is needed relative to GDP,” he said.
The finance minister made the remarks at the grand finale of EconoCon 2026, a national inter-university economics competition, at United International University (UIU) in Dhaka.
“Restoring confidence in the banking sector is essential. At the same time, increasing investment and employment is now one of the country’s biggest priorities,” Khosru said.
He said Bangladesh was also having to navigate an increasingly uncertain global economic environment, marked by slower growth, higher financing costs and rising protectionism and tariff barriers in international trade.
“Geopolitical conflicts have kept energy and transportation costs volatile, while climate change is adding new economic costs every year,” he said.
“For an import-dependent and export-oriented economy like Bangladesh, such global shocks have a direct impact.
These effects are reflected in the prices of goods in the domestic market, the exchange rate and export orders received by local factories,” he added.
The minister said the government needed to strengthen the economy’s ability to absorb such external shocks while addressing domestic challenges.
He also stressed the need for Bangladesh to prepare for its graduation from the least developed country (LDC) category in line with changing global and domestic economic conditions, irrespective of the timeline for the transition.
Khosru pointed to the complexities of economic policymaking, saying decisions often had to be taken under time constraints and with incomplete information, while policymakers remained accountable to the public.
Addressing the participating students, he said the ability to think under pressure, adapt to changing circumstances and defend positions through reasoned arguments were important qualities for policymakers.
The finance minister’s remarks came as Bangladesh continues to face pressure from elevated prices and weaker purchasing power, alongside the need to generate stronger investment, employment and revenue to support sustainable economic growth.
