Bangladesh’s private sector investment and credit growth have sharply declined, leading to the slowest GDP expansion in five years. According to Bangladesh Bank data, private sector credit growth fell to 4.72 percent in March 2026, the lowest in the country’s history. Private investment dropped to 22.03 percent of GDP in the 2024–25 fiscal year, the weakest ratio in a decade. The Bangladesh Bureau of Statistics reported GDP growth at 3.49 percent, down from 4.22 percent the previous year.

The slowdown follows prolonged political unrest, factory shutdowns, and persistent energy shortages. A contractionary monetary policy has kept interest rates high, further discouraging borrowing. Despite a change in government after the 2024 uprising, economic conditions have not improved significantly. Bangladesh Bank officials described the credit contraction as disappointing but noted government efforts to reopen closed factories.

Economists warned that without a supportive investment environment, job creation and GDP growth will remain constrained. They identified high lending rates, energy crises, and global instability as key obstacles to recovery.