Total revenue collection recorded a 5.3 per cent growth during the July-January period of FY2025, implying that a whopping 64.6 per cent growth will be required during the remainder of FY2025 if the annual target is to be achieved. A Granger causality test shows that money supply helps predict inflation, indicating that a higher money supply increases inflationary pressures in the economy. The Capital-to-Risk Weighted Assets (CRWA) ratio has sharply declined, especially for State-Owned Commercial Banks, which reported negative CRWA values after July 2024, highlighting severe vulnerabilities in the banking sector despite regulatory requirements and past efforts to mask systemic weaknesses. Greater contribution of higher domestic value-adding knit-RMG sector to the country’s export growth indicates that the net export component in the gross export earnings has been on the rise. This represents a positive development in terms of strengthening Bangladesh’s foreign exchange reserves. During the first 9 months of the interim government, the capital market’s performance fell short of expectations, which may be attributed to a combination of ongoing corrective sectoral measures and the lingering effects of past market irregularities. Bangladesh’s energy crisis is deepening due to declining domestic gas production, rising import dependence, and outdated infrastructure.
Publication Period: May 2025
