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Reports indicate a decline in credit growth, private sector expansion, and activity in the IT sector. The job market, particularly in IT manufacturing, has shrunk, resulting in job losses
Hopes for economic recovery have dwindled under Md Yunus’s leadership, with experts expressing pessimism about short-term prospects. (AFP)
Amidst a growing movement against Sheikh Hasina in Bangladesh last year, rising prices and a deteriorating economic climate were cited as key drivers for her potential departure. However, six months into Md Yunus’s leadership, hopes for economic recovery have dwindled as reports from Bangladesh indicate a worsening economic situation, with experts expressing pessimism about short-term prospects.
Bangladesh’s monthly inflation rates paint a concerning picture: January 2024 (9.86 per cent), February 2024 (9.67 per cent), March 2024 (9.81 per cent), April 2024 (9.74 per cent), May 2024 (9.89 per cent), June 2024 (9.72 per cent), July 2024 (11.66 per cent), August 2024 (10.49 per cent), September 2024 (9.92 per cent), October 2024 (10.87 per cent), November 2024 (11.38 per cent), December 2024 (10.89 per cent), and January 2025 (9.94 per cent). The figures, sourced from Bangladesh Bank, highlight the persistent inflationary pressures.
Bangladesh Nationalist Party (BNP) vice-chairman Abdul Awal Minton told News18 that the economic situation in the country is stagnant. “The economic situation has not improved. To improve the situation, certain actions are necessary but we are not seeing them on ground. Bank interest is very high, productivity everywhere is low. Law and order and political uncertainty are present.”
Political instability and law and order issues have deterred new investments, impacting employment generation. While the devaluation of currency offered some respite to the garment industry, other sectors haven’t fared as well. Reports indicate a decline in credit growth, private sector expansion, and activity in the IT sector. The job market, particularly in IT manufacturing, has shrunk, resulting in job losses.
The combination of soaring inflation, escalating prices, stagnant industries, mounting debt, and limited employment opportunities paints a bleak picture of Bangladesh’s economic situation.
- Location :
Dhaka, Bangladesh