Nearly 18 months after Dr Muhammad Yunus assumed leadership of the interim government following the July 2024 Mass Uprising, Bangladesh’s economy continues to struggle to regain momentum, according to economists and business analysts.
At the start of Yunus’s tenure, the country faced a fragile economic landscape: soaring inflation, a persistent dollar shortage, instability in the banking sector and weak private investment. While the administration has managed to prevent a total economic collapse, critics argue it has not succeeded in restoring dynamism.
Rizwan Rahman, former president of the Dhaka Chamber of Commerce and Industry, said the government’s immediate task of stabilising the economy was met, but efforts to stimulate growth have been insufficient.
“The crisis was contained, but economic energy has not returned,” he added.
Inflation, initially at 11.66 per cent, has eased only slightly despite a series of contractionary monetary measures, including halting money printing and raising interest rates on loans. According to the Bangladesh Bureau of Statistics, consumer inflation remained at 8.49 per cent in December 2025, affecting essential goods such as onions, potatoes and cooking oil.
Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS) Mahfuz Kabir said market manipulation and syndicate practices remain largely unchecked, further burdening ordinary consumers.
High interest rates and restrictive monetary policy have also stalled both domestic and foreign investment. Entrepreneurs are hesitant to launch projects, and foreign investors remain cautious due to political uncertainty and weak law enforcement.
Additionally, the banking sector continues to grapple with non-performing loans, which now exceed Tk6 trillion, or over one-third of total outstanding loans, restricting credit availability and hampering private sector growth.
On a brighter note, foreign exchange reserves have more than doubled since Yunus took office, rising from $15 billion to over $32 billion, largely fuelled by remittances. Nonetheless, analysts warn that without structural reforms and an investment-friendly environment, sustainable recovery remains elusive.
