State of the Bangladesh Economy in FY2023-24 (First Reading)
Independent Review of
RBD
Bangladesh's Development
The backdrop
Energetic steps to forestall capital flight have been missing, with telltale signs of persistent outflow of
resources through informal channels and hundi/hawala routes at the cost of inflow of forex resources.
ā Reliability of external sector-related data has emerged as a concern in the backdrop of contradictory
and conflicting data.
While Bangladesh's external debt situation is within the IMF-World Bank parameters of
sustainability, over the near and mid term future the debt servicing liabilities are likely to rise
significantly in the backdrop of higher interest costs, larger share of non-concessional loans, and
stringent terms of borrowings. The rising debt servicing liabilities are likely to put further pressure on
falling forex reserves.
ā Unless external balances are stabilised and external sector performance is put on the rails of historical
trends, it will not be possible to arrest and reverse the sharp drawdown of forex reserves.
Consequently, macroeconomic management will continue to be challenging, and the economy will be
confronted with further uncertainties and face risks.
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
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