(MENAFN- Asia Times) Bangladesh, since its liberation in 1971, has undergone a profound economic transformation, evolving from one of the world's most impoverished nations to one of the fastest-growing economies.
Despite significant progress in indicators such as the Human Development Index (HDI) and Sustainable Development Goals (SDGs), recent external shocks, particularly from the Covid-19 pandemic and the Russia-Ukraine conflict, have brought attention to the vulnerabilities in the nation's economic landscape.
Also read: Why Bangladesh can't get enough of Hasina
In the face of adversity, Bangladesh showcased resilience by achieving GDP growth of 3.4% in 2020 , outperforming many developing nations and earning accolades for its government's adept management.
However, the subsequent move to seek a US$4.5 billion loan from the International Monetary Fund (IMF), alongside Sri Lanka and Pakistan, in late 2022 suggests underlying economic challenges that extend beyond immediate global uncertainties.
Annual GDP growth rates of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) nations (Percentage, 2010-2021). Source: Author's own, data from the World Bank
Awami League re-elected
As Bangladesh concluded its 12th parliamentary election on January 7, with the Awami League securing victory for a fourth consecutive term under Prime Minister Sheikh Hasina's leadership, the implications for the country's economic future are significant.
A critical concern that emerges is the over-reliance on the textile and ready-made garments (RMG) sector, contributing more than 84% to total export earnings in the fiscal year 2019-20. This concentration exposes the economy to risks associated with global demand fluctuations and the labor-intensive nature of production methods.
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