2025 in review, 2026 in focus: A business perspective on economic recovery

As a businessperson, I view 2025 as a difficult but instructive year for Bangladesh's economy. It reminded us that stability alone is not enough. Businesses need confidence, clarity, and opportunity to grow. If we want a genuine rebound in 2026, we must learn from our mistakes and focus on practical solutions.

In 2025, tight economic policies helped curb inflation and protect foreign exchange reserves, but they also constrained investment. Credit remained expensive and hard to access, particularly for small and medium enterprises.

In 2026, the priority should be to restore growth in a measured manner. As inflation eases, financing must become more supportive so businesses can expand, create jobs, and raise output.

The most important lesson from last year is the fragility of investor confidence. Many entrepreneurs postponed investment amid policy uncertainty, complex regulations, and concerns over law and order in industrial zones.

Businesses do not expect perfection, but they do require predictability. Clear rules, policy consistency, and fair enforcement can quickly revive confidence and unlock private investment.

Weaknesses in the banking sector also became more apparent in 2025. High non-performing loans and governance shortcomings restricted credit flows to productive firms.

In 2026, repairing the financial system is critical. Stronger banks, quicker resolution of bad loans, and deeper alternatives such as capital markets are needed to ensure viable businesses are not starved of funds.

Last year further highlighted the risks of over-reliance on a single export sector. Readymade garments remain vital, but shifts in global markets exposed the economy's vulnerability.

In 2026, there must be serious support for new export sectors, including pharmaceuticals, agro-processing, light engineering, and ICT services. A more diversified export base will strengthen the economy and generate better-quality jobs.

Public finances also came under strain in 2025 due to weak tax collection, limiting spending on infrastructure and services essential for business.

In 2026, improving tax administration and widening the tax base, while keeping the system fair and simple, will enable greater investment in roads, ports, power, and skills.

Despite the challenges, 2025 also revealed areas of resilience. Remittance inflows remained strong, and digital businesses continued to expand. With greater investment in skills, technology, and reliable energy—including renewables to lower long-term costs—these strengths can underpin future growth.

Put simply, the lesson from 2025 is clear. Bangladesh does not need temporary fixes alone. It needs confidence, reform, and diversification. If government and businesses work together with a shared purpose in 2026, the economy can move from a slow recovery to strong and sustainable growth.

The author is a former president of the Dhaka Chamber of Commerce and Industry (DCCI).