Against a backdrop of economic fragility and political reform, this April, ECRL Monthly Economic & Business Review delves into the opportunities and challenges of a nation preparing to graduate from its Least Developed Country (LDC) status in 2026. With macroeconomic volatility and an evolving global trade landscape, Bangladesh stands at a critical crossroads where decisive reform, strategic investment, and international cooperation are more vital than ever.
Our cover story, “Bangladesh 2025: On the Road to LDC Graduation,” offers a comprehensive review of the country’s shifting economic trajectory. After a decade of impressive growth, Bangladesh now faces headwinds: GDP growth is projected to fall below 4%, inflation remains stubborn, and foreign exchange reserves continue to face pressure. The removal of preferential trade privileges following LDC graduation could cost the economy as much as USD 7 billion annually in export revenue. The potential contraction in ready-made garment (RMG) exports, pharmaceutical vulnerability due to TRIPS waiver expiration, and disruptions in logistics underscore the urgency of economic diversification and policy reform.
To navigate these turbulent waters, the government is introducing ambitious initiatives—including a new Foreign Direct Investment (FDI) Heatmap launched by BIDA, targeting 19 priority sectors. Meanwhile, the Bangladesh Investment Summit 2025 signaled renewed interest in sectors beyond RMG, including pharmaceuticals, IT-enabled services, and agro-processing. This issue’s ECRL Thought, “Attracting FDI in a Changing Economy,” explores these developments and argues for enhanced trade diplomacy, streamlined regulation, and greater investor confidence.
To navigate these turbulent waters, the government is introducing ambitious initiatives—including a new Foreign Direct Investment (FDI) Heatmap launched by BIDA, targeting 19 priority sectors. Meanwhile, the Bangladesh Investment Summit 2025 signaled renewed interest in sectors beyond RMG, including pharmaceuticals, IT-enabled services, and agro-processing. This issue’s ECRL Thought, “Attracting FDI in a Changing Economy,” explores these developments and argues for enhanced trade diplomacy, streamlined regulation, and greater investor confidence.
This edition also features exclusive interviews with three key experts: Dr. Jamaluddin Ahmed, Chairman at Emerging Credit Rating Ltd. (ECRL), Dr. Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), and Dr. Md. Rezaul Bashar Siddique, Component Manager for the Support to Sustainable Graduation Project under the Ministry of Finance. Their insights highlight the importance of institutional reform, export diversification, and resilience in navigating global headwinds and internal fiscal challenges.
Bangladesh’s story in 2025 is not just about weathering storms—it is about steering toward a more sustainable and inclusive future. From stabilizing inflation and enhancing productivity to fostering new investment and trade channels, the choices made today will shape the nation’s path beyond LDC status. We hope this issue informs, provokes thought, and inspires action.
Happy reading!