Bangladesh's economy has hit a period of stagnation due to weak revenue collection, a widening budget deficit, and mounting inflationary pressures, according to the Bangladesh Bank’s annual report for FY 2023–24.

The report warns that the economic slowdown is threatening overall macroeconomic stability. Reduced funding for development projects has led to a liquidity crisis in the banking sector, forcing the government to rely heavily on borrowing—further fueling inflation.

However, the report notes some recent signs of recovery following a change in government. Improvements in fiscal discipline, rising domestic savings, and initiatives to boost investment have generated cautious optimism. Inflation is also showing signs of a gradual decline. To ensure long-term stability, the central bank emphasizes the need to increase private sector investment.