A Dhaka-based chamber has warned that export growth may be adversely affected in June 2025 due to the impact of a 10-day public holiday this Eid.
A similar holiday in April, due to Eid-ul-Fitr, had already limited shipment growth, resulting in only marginal gains in exports during that month.
In its latest quarterly economic review for the third quarter of FY25 (January-March), the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, has projected that imports and remittance inflows are likely to rise in the three months to June 2025, contributing to short-term external stability.
The chamber also said that the country’s foreign exchange reserves might decline in May 2025 due to scheduled payments to the Asian Clearing Union (ACU) for the March-April period.
The MCCI observed that inflation eased slightly over the past few months, though it is expected to gradually pick up in May and June 2025, driven by both domestic supply-side constraints and external cost pressures.
Despite persistent economic headwinds, Bangladesh’s economy was showing early signs of a gradual recovery, the chamber said.
While Bangladesh’s low labour costs remain an attractive proposition for foreign investors, the MCCI noted that several structural constraints-including underdeveloped infrastructure, energy shortages, weak transmission systems, inconsistent policy and regulatory frameworks, a lack of industrial land, corruption, and non-transparent application of laws-are deterring new foreign direct investment (FDI).
“The government must urgently address these impediments to attract higher volumes of FDI and accelerate economic development,” the report mentioned.
The MCCI cautioned that ongoing global conflicts and elevated uncertainty could impact Bangladesh’s socio-political and economic landscape, putting further pressure on the country’s recovery.
The chamber warned that severe regulatory lapses in the banking sector and massive loan scams eroded public confidence and delayed a full macroeconomic recovery.
The report concluded by saying that ongoing reforms in the banking sector and efforts to restore public trust in financial institutions would be critical for reviving GDP growth and ensuring long-term stability.
jasimharoon@yahoo.com