Fiscal Issues for National Budget 2025 to Foster Economic and Business Growth

ChatGPT said:

Bangladesh’s macroeconomic outlook in 2025 reflects a period of adjustment after years of strong growth. GDP growth slowed to around 5.8% in FY2024 due to inflation, weak industrial output, energy shortages, and political unrest, with forecasts for FY2025 falling below 4%. Inflation remains stubbornly high at around 9.7%, driven by food and energy prices, although import normalization and supply-side improvements are needed to contain it. While exports and remittances show signs of recovery, FDI inflows have dropped sharply, and private sector credit growth remains sluggish under tight monetary policy. The banking sector faces major challenges from high non-performing loans and liquidity shortages. Fiscal pressures are mounting as public debt rises to 36.3% of GDP, with increasing reliance on domestic borrowing and growing debt servicing costs. Weak debt management and fragmented control across institutions have further strained financial stability. Public investment management remains inefficient, marked by delays, cost overruns, and weak coordination. To stabilize the economy, Bangladesh must prioritize inflation control, energy security, debt sustainability, and governance reforms while stimulating private investment and export resilience.