Global shocks and internal vulnerabilities threaten Bangladesh’s economic stability, the Policy Research Institute of Bangladesh (PRI) warned on Thursday.
PRI Principal Economist Ashikur Rahman flagged a fragile recovery, with growth falling to 3 per cent in the Oct-Dec quarter, the lowest since the pandemic. He also pointed to a fractured financial sector, with non-performing loans at 30 per cent, and the government’s reliance on short-term loans, leaving little fiscal space.
Rahman identified three key external risks—the ongoing Middle East crisis, Bangladesh’s impending LDC graduation, and uncertainty over US tariff policies. The factors are pushing up energy prices and disrupting trade, further stressing the balance of payments.
He stressed that neglecting fiscal and financial reforms would worsen vulnerabilities and harm international confidence, especially amid the uncertain International Monetary Fund programme.
International Chamber of Commerce President Mahbubur Rahman called for strengthening Bangladesh’s competitiveness through reforms, focusing on its fundamentals for inclusive growth.
PRI Chairman Zaidi Sattar expressed concern over Bangladesh’s fuel vulnerability and the impact of rising oil prices on key sectors like food and fertilisers. He also noted a 5 per cent decline in exports for FY2026 and advocated for import regime reforms to support export diversification.
Clinton Pobke, Deputy Head of Mission at the Australian High Commission, reiterated Australia’s commitment to supporting Bangladesh’s reforms.
The discussion concluded with calls for urgent reforms to improve fiscal transparency and bolster resilience against external shocks, stressing that Bangladesh’s future growth depends on strategic policy choices.
Department of Foreign Affairs and Trade (DFAT) of the Australian Government was a partner of PRI in the discussion titled “Monthly Macroeconomic Insights: Evolving Global Landscape for Trade and Growth.”
