Dhaka, Bangladesh – The country’s economic crisis deepens as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urges factory owners to keep their units shut until further notice, fearing vandalism and unrest.
Bangladesh’s economic growth has been in freefall for two consecutive years, with GDP growth projections plummeting to 5.6% in fiscal year 2024, down from 7.1% in fiscal year 2022. The country’s external debt has surpassed $100 billion, with debt servicing increasing at an alarming rate, putting immense pressure on foreign exchange reserves.
Inflation remains a major concern, with food and fuel prices falling globally but Bangladeshis failing to benefit. The government’s decision to raise electricity prices three times in 2023 has only exacerbated the situation.
Food insecurity is on the rise, with around 37.7 million people experiencing moderate to severe food insecurity in 2023. More than a quarter of families have been forced to take out loans to cover daily necessities.
The ongoing political crisis is further aggravating the economic downturn, with the opposition demanding a caretaker government system to oversee national elections. Nationwide blockades and disruptions are affecting small traders and businesses, with the economy losing 65 billion takas ($588m) a day.
Export earnings have fallen by 13.64% to $3.76bn, the lowest in 26 months, while remittances have declined by 4.4% during the last quarter. The country’s economic future looks bleaker than ever, with experts warning of an impending economic collapse.
