Economy shows early signs of recovery: PRI

Bangladesh's economy is showing early signs of improvement, but deep-rooted problems continue to hold back growth, investment, and poverty reduction, the Policy Research Institute (PRI) of Bangladesh said today.

While remittances and foreign reserves have improved slightly, the overall economic situation remains under pressure, said PRI Chairman Zaidi Sattar at the launch of the Monthly Macroeconomic Insights for the August-September period at its office in Dhaka.

He said that economic growth fell to 3.97 percent in FY2025, the lowest since FY2020, due to weak investment and long-standing structural issues.

"This is not a recovery that benefits everyone," he said, pointing to rising inequality, falling wages, and growing stress in the banking sector.

Ashikur Rahman, principal economist at PRI, said some stability has returned, but it has come at a high cost, particularly for the poor.

"Without fixing our institutions and restoring financial discipline, meaningful growth will remain out of reach," he said.

At the event, participants raised concerns about the central bank's lack of independence, weaknesses in the financial system, poor targeting of the beneficiaries of social protection schemes, and an inequitable tax structure.

They said minor fixes will not be enough.