Bangladesh’s economy is not collapsing but undergoing a necessary reset

The recent wave of pessimism surrounding Bangladesh’s economy under its interim administration, much of it amplified by selectively framed local commentary, offers an incomplete and often misleading portrait of the country’s actual economic trajectory. Much of this concern is overstated, as the headline indicators reflect a necessary structural correction rather than an economic collapse.

While elevated inflation and a battered banking sector are real and serious challenges, they do not amount to evidence of an economy in free fall.

A more careful reading, one that accounts for the disruptive legacy of the previous administration and the corrective measures undertaken after the political transition, reveals a difficult but necessary period of structural rebalancing.

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