1. What is the biggest challenge for the economy right now?

The principal challenge is managing multiple pressures simultaneously: curbing inflation, generating employment, restoring investors’ confidence, reforming the banking sector, and mitigating risks in the energy sector.

2. Why is inflation receiving the greatest attention?

Inflation currently stands at 8.71 per cent, while wage growth is 8.09 per cent. This means the cost of living is rising faster than incomes, eroding purchasing power and weakening consumer demand.

3. Where does the tension lie between reducing inflation and increasing employment?

To contain inflation, interest rates are typically kept elevated, which makes borrowing more expensive and can discourage investment. Conversely, increasing liquidity to stimulate job creation may fuel inflation. The government’s challenge is to strike a careful balance between these competing objectives.

4. Why is economic growth a concern now?

GDP growth for FY2024–25 has fallen to just 3.49 per cent, marking a third consecutive year of decline. Under such conditions, merely setting ambitious growth targets is insufficient; stabilising the economy must come first.

5. Why has poverty returned to the forefront of discussion?

High inflation, declining real incomes, and weak employment generation have contributed to a rise in poverty. According to the World Bank, the poverty rate stands at 21.2 per cent, meaning approximately 36 million people are living below the poverty line.

6. Why is income inequality a growing concern?

Bangladesh’s Gini coefficient has risen to 0.499, with nearly 41 per cent of total income concentrated among the top 10 per cent of the population. This indicates that the benefits of economic growth are not being distributed equitably.

7. How severe is the employment crisis?

According to the World Bank, between 2016 and 2022, around 14 million young people entered the workforce, yet only 8.7 million jobs were created. Youth unemployment stood at 8 per cent in 2023, rising to 14 per cent among university graduates—highlighting a structural mismatch between growth and job creation.

8. Why is investment not increasing?

The primary constraint is a lack of confidence. This is compounded by energy shortages, policy uncertainty, and weak credit flow.

9. Why is the banking sector such a major concern?

Non-performing loans have reached Tk 644,515 crore, equivalent to 35.73 per cent of total loans. Political interference, weak regulatory oversight, and capital flight have made the banking sector one of the economy’s most significant vulnerabilities.

10. What risks does the Iran conflict pose to Bangladesh’s economy?

The conflict has driven up global energy prices, increasing Bangladesh’s import costs and exerting pressure on the currency. It may also reignite inflation and create additional strain on exports, remittances, subsidy expenditures, and the current account balance. As such, it represents a major external test for the new government.