City Bank Capital has revised Bangladesh’s GDP estimate for FY24 to USD 300 billion, a significant drop from the government’s previous estimate of USD 459 billion. This revision, based on electricity consumption data, raises concerns about the true state of the economy.
The report also forecasts exports at USD 44.5 billion, USD 10 billion less than previous predictions, which is worrying for a country heavily reliant on exports, especially in the garment industry.
In addition to rising non-performing loans, high debt, and weak foreign investment, the economy faces other challenges. The Bangladeshi Taka has lost value, making imports more expensive and hurting people’s purchasing power. Power shortages and inefficiencies are slowing industrial production, and unemployment is growing, particularly in export-driven sectors.
The government has been slow in addressing key issues like banking reforms and corruption, which leaves the country vulnerable to further economic troubles. Experts warn that if these issues aren’t addressed, the situation may worsen.
Source: Business Inspection BD
