• The Daily Hints
• 21 Jan, 2025

Bangladesh’s economy is under significant pressure in this current year 2025 due to five major risks including “Inflation”, “Extreme weather conditions”, “Pollution”, “Unemployment” and an “Economic Slowdown” as highlighted by a recent World Economic Forum (WEF) report.

Key Challenges Identified

According to Bangladesh Bureau of Statistics (BBS) The WEF report emphasises that Bangladesh faces one of its most critical economic periods with “Inflation” leading the list. The average inflation rate in 2024 reached “10.34%”, a sharp increase from “9.48%” in 2023 and “7.7%” in 2022.

Other significant risks include

1. Extreme Weather Conditions: South Asia, particularly Bangladesh is highly vulnerable to “floods”, “high temperatures” and other climatic extremes.

2. Pollution: Ranked among the top 10 most polluted nations Bangladesh faces immense challenges in controlling air and water pollution, especially in densely populated areas.

3. Unemployment: Rising joblessness continues to strain the economy affecting household incomes and growth prospects.

4. Economic Slowdown: The World Bank has downgraded Bangladesh’s GDP growth projection for 2024-25 to “4.1%”, citing political instability and policy uncertainty.

Global and Local Implications

The report warns that climate change, social inequalities and economic issues may exacerbate tensions worldwide. In Bangladesh the lack of investment confidence and challenges in transitioning to a green economy further complicate the path to recovery.

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Survey Findings

As part of its “Executive Opinion Survey” the WEF asked respondents to identify the biggest challenges their countries face over the next two years. Out of “34 listed risks” Bangladesh’s most critical issues align with global concerns but have unique local implications.

Impact on Growth

Political unrest in mid-2024 severely impacted Bangladesh’s economy, reducing investor confidence and slowing trade and industrial activities. The World Bank report “Global Economic Prospects” attributes the lower growth forecast to these factors, urging for policy reforms and stability to rebuild trust.

Bangladesh stands at a crossroads in 2025, battling inflation, environmental challenges and economic uncertainties. Addressing these issues through sustainable policies and international collaboration is crucial to securing long term growth and resilience.