Seven key developments in economy last week

Bangladesh’s economy in the first week of March revolved around slowing private investment, shifts in the domestic LPG market, a surge in remittance inflows, persistent export decline, rising geopolitical risks to trade, potential increases in the oil import bill and disruptions in fertiliser production.

The following is a recap of those major stories as covered by Star Business.

Private investment hits 11-year low (March 1)

Private investment fell for the third consecutive year to 22.03 percent of GDP in the fiscal year 2024-25 (FY25), the lowest in 11 years, reflecting a weak investment climate and macroeconomic stress. Economists warn that the decline could slow job creation and undermine future economic growth.

Big LPG importers sidelined as emerging players gain ground (March 2)

Major LPG importers are losing market dominance as smaller and emerging operators expand their presence. The shift reflects rising competition and changing supply dynamics in the liquefied petroleum gas sector, which has experienced rapid growth amid rising household and industrial demand since 2023.

February remittance crosses $3b (March 2)

Remittance inflows exceeded $3 billion in February, providing crucial support to Bangladesh’s foreign exchange reserves. The strong inflow reflects increased transfers from migrant workers, offering some relief to the country’s balance of payments amid ongoing external sector pressures.

Exports drop for 7th straight month on RMG slump (March 3)

Bangladesh’s exports declined for the seventh consecutive month as shipments of ready-made garments weakened. The prolonged downturn highlights slowing global demand and persistent challenges facing the country’s key export sector.

Iran war could raise Bangladesh’s trade costs (March 4)

The widening conflict involving Iran could significantly increase Bangladesh’s trade costs by disrupting major shipping routes and raising freight charges. Businesses fear that a prolonged instability in the Gulf region may affect supply chains and import expenses.

$10 oil price rise could add $80m to monthly bill (March 5)

A $10 increase in global oil prices could raise Bangladesh’s monthly import bill by about $80 million, according to the report prepared by BRAC EPL Stock Brokerage Ltd, underscoring the economy’s vulnerability to fluctuations in global energy markets.

Gas rationing shuts five urea factories (March 6)

Authorities suspended gas supplies to five of the country’s six urea fertiliser factories amid fears of disruptions linked to the conflict in the Gulf region and the closure of the Strait of Hormuz, although officials say existing stocks should meet demand during the current Boro season.