An anatomy of the current economic situation in Bangladesh

The economy of Bangladesh is at such a critical juncture, struggling with both long-standing structural problems and newly emerging issues.

Though exports and remittances have shown improvement in recent times, continuing macroeconomic instability, high inflation, and political unrest continue to shake the prospects for sustainable growth and recovery.

These imperative challenges now require well-coordinated strategies and overall reform initiatives that will stabilise the economy on the pathway of resilient and sustainable growth.

Despite the expected recovery, the incidence of macroeconomic instability remains high, denting confidence.

Inflation is still at a high level, shredding real incomes and further increasing financial vulnerability among the population.

For more than two years, monetary policy has periodically resorted to raising interest rates to combat inflation.

Though since May 2022 until now, Bangladesh Bank has hiked the repo rate by 11 times, the impact remains marginal.