Bangladesh's economy has slowed significantly, with GDP growth dropping to 3.97% in the fiscal year 2024-25, the lowest in a decade, due to tight monetary policies, import restrictions, and political uncertainty.

For the first time in three years, Bangladesh recorded a balance of payments surplus of $3.4 billion in 2024-25, supported by strong remittance inflows and export earnings, which helped stabilize the foreign exchange market.

Remittance inflows reached $2.422 billion in August 2025, marking a 9% year-on-year increase, boosting foreign exchange reserves to over $31 billion and easing pressures on the dollar market.

Exports declined by 2.93% in August 2025, with RMG exports falling 4.75% due to US tariff uncertainties and seasonal trends, although overall exports increased by 10.61% in July–August, driven by growth in textiles and engineering sectors.

Total import expenditure was $68.4 billion, only slightly higher than the previous year, with declines in capital machinery and intermediate goods indicating stagnation in investment and productivity.

Revenue collection in July increased by 24%, but a shortfall against targets persists, highlighting the need for tax reforms, especially in indirect taxes like VAT, to support sustainable growth.

The poverty rate has risen to 28%, nearly doubling since 2022, driven by high inflation, declining real wages, political instability, and pandemic impacts, with many households relying on debt and spending over half their income on food.

Inflation decreased to 8.29% in August 2025, the lowest in 37 months, but remains high, affecting purchasing power despite wage increases, with a 12-month average around 9.77%.

Private sector credit growth remains sluggish at 6.52%, reflecting weak investment demand, while increased government borrowing risks reducing credit availability for private sector growth.

Default loans surged to Tk 5.3 trillion, accounting for 27.09% of all loans, due to irregular disbursements, weak oversight, and loans to politically influential groups, threatening banking sector stability.