Political Volatility Poses New Risks to Economy : S&P 

S&P’s Melbourne office has reported that the sudden resignation of Bangladesh’s Prime Minister has intensified the country’s economic difficulties,

American agency S&P has downgraded Bangladesh’s long-term credit rating from BB- to B+, citing pressures on the country’s external profile and sociopolitical issues. The downgrade reflects concerns over depleting foreign exchange reserves, increased debt servicing, high interest expenses, a significant budget deficit, and the lack of political opposition, which affects checks and balances.

The World Bank forecasts Bangladesh's economy to grow by 5.7% in the 2024-25 fiscal year, lower than the government's 6.75% projection. This growth is expected to be supported by increased private consumption due to easing inflation and a boost in overall investment from large projects. The WB's Global Economic Prospects report highlights an anticipated gradual easing of input and imported goods shortages

Bangladesh's Business Climate Index score has fallen below 60 for the first time since its inception during the Covid-19 pandemic, reflecting a troubling outlook for local businesses. The score for FY 2023-24 dropped to 58.75 from 61.95 in FY 2022-23, and 61.01 in FY 2021-22. The survey, which evaluated companies across 11 key areas including business startup, land availability, legal access, infrastructure, labour

Fitch Ratings has announced that Bangladesh's central bank's planned move to a single, more market-determined exchange rate will be critical to stabilizing foreign exchange reserves and reducing external imbalances. The country's external finances, particularly foreign exchange reserves, have been under pressure since early 2022, according to Fitch's report titled "Bangladesh: Twin Deficit Pressures to Ease."

EuroCommerce, the primary European organisation representing the retail and wholesale sector, has expressed concern over the European Union's new GSP regulation proposal, stating that the safeguard measures would severely impact Bangladesh's economy. If the proposed rules remain unchanged, Bangladesh could face MFN tariffs and the suspension of zero-duty benefits for its apparel items in the EU market.