Economy still fragile despite early recovery signs: MCCI

TIMES Report
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Logo of the Metropolitan Chamber of Commerce and Industry (MCCI). Photo: Collected

Bangladesh’s economic recovery remains fragile despite some positive signals, weighed down by deep-rooted structural challenges and political uncertainty, the Metropolitan Chamber of Commerce and Industry (MCCI) said in its April–June 2025 review of the immediate past fiscal year 2024–25.

Citing Bangladesh Bureau of Statistics data, MCCI said GDP growth in the third quarter rose to 4.86 per cent from 4.48 per cent in the previous quarter, signalling a mild improvement. Inflation eased to 8.48 per cent in June, though the annual average remained steep at 10.03 per cent — well above a comfortable level.

The final quarter of FY25 showed early signs of a turnaround, with higher export earnings and remittance inflows helping to stabilise foreign currency reserves and inject momentum into the economy.

However, the chamber warned that weak private sector credit growth, declining imports of capital machinery, and reduced investment levels continue to weigh heavily on industrial expansion and investor confidence.

It also pointed to persistent weaknesses in the banking sector — including regulatory gaps and widespread loan irregularities — that have further slowed recovery.

MCCI stressed that ongoing reforms to strengthen financial governance and restore public confidence in banks will be essential to sustaining recovery, boosting investor sentiment, and ensuring long-term stability.

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