Bangladesh’s economy remained resilient and continued its strong post-pandemic resurgence in 2022, but the medium-term outlook is uncertain due to global challenges. With the government investing in infrastructure projects, EBL Securities looks at the prospects for the industry as the country looks to build a stronger future. By EBL Securities Ltd, Bangladesh.
Bangladesh, with its US$460bn economy, maintained a sustained economic growth rate of approximately six per cent over 10 years, until the COVID-19-led economic disruption triggered a global economic slowdown – and Bangladesh was no exception. Economic recovery was gaining momentum when the Russia-Ukraine conflict broke out in 2022, but Bangladesh remained resilient and continued its strong post-pandemic resurgence despite the odds.
The country’s economy was one of the few to sustain a positive growth rate in 2021 during COVID-19 (+6.94 per cent) and exhibited higher GDP growth of 7.1 per cent in 2022. However, global supply chain disruptions caused by the protracted Russia-Ukraine war continued to have spillover effects on the Bangladesh economy. Consequently, economic challenges emerged, such as higher inflationary pressures, exchange rate depreciation and forex reserve depletion.
