The economy of Bangladesh is currently going through a challenging period, where although some indicators are positive, concerns about the stability of the macroeconomic environment persist. In particular, the instability of the global economy, the high exchange rate of the dollar and inflation are putting pressure on the country's economy.
1. Gross Domestic Product (GDP) Growth:
One of the main indicators of the economy of Bangladesh is GDP growth. According to the Bangladesh Bureau of Statistics (BBS), the GDP growth rate for the current fiscal year 2024-25 stood at 3.97 percent. This is the lowest growth in the last two decades (excluding the Covid-19 pandemic).
Final estimate for fiscal year 2023-24: 4.22 percent
Growth for fiscal year 2022-23: 5.78 percent It is worth noting that the World Bank has forecast 3.3 percent growth in the current fiscal year and the International Monetary Fund (IMF) has predicted 3.8 percent growth. The growth of the agriculture and services sectors has slowed down slightly, while the growth of the industrial sector has increased by 3.51 percent.
2. Per capita income:
In the current fiscal year 2024-25, the per capita income of the people of Bangladesh stood at 2,820 US dollars. This is a record so far.
Per capita income in the fiscal year 2023-24: 2,738 dollars
Per capita income in the fiscal year 2022-23: 2,749 dollars However, due to the increase in the dollar exchange rate, there is a difference in the per capita income in taka terms. In taka terms, the per capita income in the current fiscal year stood at 3,39,221 taka.
3. Inflation:
Inflation is one of the biggest challenges for the Bangladeshi economy. According to the latest data, overall inflation has decreased to 9.32 percent in February 2025, which is the lowest in the last 22 months.
April 2023: 9.24 percent
December 2024: 10.89 percent (according to BBS) Although the government is reporting low inflation, its benefits have not yet fully been reflected in the daily commodities market. Chief Adviser Muhammad Yunus has taken steps to control inflation, such as increasing interest rates.
4. Foreign exchange reserves:
Pressure on foreign exchange reserves continues. According to Bangladesh Bank data, Bangladesh's foreign exchange reserves stood at US$ 25.80 billion as of May 28, 2025. However, according to the International Monetary Fund's (IMF) Balance of Payments Methodology (BPM6), the amount of reserves is $ 20.56 billion.
July 14, 2023: $ 24.25 billion The government and the central bank are taking various steps to stabilize the reserves, but import pressure and the high value of the dollar are still creating challenges.
5. Remittance flow:
The positive trend in remittance flow continues. As of May 31, the country received 27.5 billion 7 million US dollars in remittances.
Same period of the last fiscal year: 21.37 billion 4 million US dollars Remittance flow increased by 28.70 percent year-on-year. This is helping to increase the supply of dollars in the country's economy.
6. Export earnings:
Despite the growth in export earnings, Bangladesh is lagging behind the target.
January 2025: 57.24 billion dollars (11.45 percent more than the same period of the previous year)
Total export earnings for the fiscal year 2022-23: 55.56 billion dollars (growth of 6.67 percent) The target for export earnings in the current fiscal year 2023-24 has been set at 620 billion dollars.
7. Import expenditure:
It has been possible to bring some control over import expenditure.
Import expenditure in fiscal year 2022-23: $75.06 billion (about 16% less than the previous fiscal year)
July-August 2023: Imports of goods decreased by 6.25 percent, but expenditure increased by 2.45 percent. Due to the dollar crisis, the government has taken strict measures to control imports, which has resulted in a slight decrease in expenditure.
8. Government debt and budget deficit:
Bangladesh's total government debt-GDP ratio is 40 percent, which is below the 55 percent limit set by the IMF. However, the government's ability to repay debt depends on revenue collection.
Total budget for fiscal year 2023-24: Tk 7,61,785 crore
Overall deficit: Tk 2,61,785 crore (about 5.2 percent of GDP) A budget of Tk 7 lakh 90 thousand crore is being presented for fiscal year 2025-26, where the budget deficit can be estimated at Tk 2 lakh 26 thousand crore.
9. External Debt:
Bangladesh's external debt has again crossed the $100 billion mark.
At the end of June 2025: around $104 billion
At the end of December 2023: exceeded $100 billion. Private sector external debt has fallen to its lowest level in four years ($9.80 billion at the end of January 2025).
Macroeconomic Challenges:
Political uncertainty, energy crisis, sluggish investment, rising unemployment and the volatile dollar exchange rate are the main challenges for the Bangladesh economy. To address these challenges, it is essential for the government to increase revenue collection and adopt more far-sighted policies in economic management.
