Salekeen Ibrahim

Bangladesh has been suffering from a mix of micro and macroeconomic pressures since August 2024. The banking sector, already weakened over many years, is now in trouble, marked by a capital shortfall, soaring non-performing loans (NPLs), and corruption.

The national economy of Bangladesh is facing one of its toughest tests in decades. The provisional GDP growth for this fiscal year is only 3.97 percent, the lowest in 34 years apart from the pandemic period. It is true that a sluggish growth rate can have different interpretations when compared with previous years, but few can deny the adverse state of many economic indicators even after more than a year of the interim government.

Private sector credit growth fell to 6.4 percent in June 2025, the lowest in 22 years. This alarming number reflects the immense strain on the national economy, a slump not seen since the early 2000s. But the fading momentum goes beyond statistics. It is a pulse check on our economic strength, and the social cost of falling credit is immense.

The economy of Bangladesh is currently undergoing several reforms and adjustments. However, in recent times, currency devaluation and rising inflation have shaken households, small businesses and industries, forcing painful changes at every level. Many are asking how this devaluation affects the people, and how stability can be regained.

Cottage, Micro, Small & Medium Enterprises (CMSMEs), although being key contributors to Bangladesh’s national GDP growth, remain stifled by limited access to finance, markets, and digital tools.

In Bangladesh, we cannot think of a holistic economy without attending to the CMSME sector. From rural artisans to urban tech start-ups, CMSMEs are everywhere, creating jobs, generating income, and driving inclusive growth. Over the past decade, it is evident that the Bangladesh Bank, along with private commercial banks, has made significant strides in improving access to finance. This effort continues to evolve.

Our country has long been recognised for its abundant labour force. In addition, this abundance has often been labelled as “cheap labour”, a term that underscores a missed opportunity for a prospective nation.

Bangladesh is on the verge of graduating from the least developed country (LDC) category in 2026, which will be a significant milestone in the history of its economic journey.