One year into the interim government’s tenure, Bangladesh is facing a deepening investment crisis, business leaders and economists warn.
DHAKA – Private investment has slowed sharply, with capital machinery imports plunging to multi-year lows — even below Covid-19 levels — and private sector credit growth hitting its weakest point in over a decade. Bangladesh Bureau of Statistics data shows private investment fell to 22.48% of GDP in FY 2024–25, the lowest in five years and well short of the 28.2% target under the 8th Five-Year Plan.
High interest rates of 16–17% due to the Bangladesh Bank’s contractionary stance, combined with persistent energy disruptions, gas shortages, and regulatory inefficiencies, are crippling business activity. GDP growth slowed to 3.97% in FY25, while unemployment rose to 4.63% in late 2024.
Industry leaders, including Ha-Meem Group chairman AK Azad, say political instability, unclear policy direction, and poor energy supply have stalled new investments. Business chambers warn this is not a short-term slowdown but a deeper erosion of investor confidence.
Experts from DCCI, Policy Exchange Bangladesh, CPD, and Sanem agree urgent reforms are needed in governance, energy reliability, financial policy, and ease of doing business. Without decisive action, they caution, Bangladesh risks prolonged stagnation in growth, job creation, and industrial expansion.
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