United News of Bangladesh

State Minister for Youth and Sports Md Aminul Haque has highlighted the critical role of youth in driving economic growth and the need to further strengthen their contribution. “We are committed to transforming the youth sector, ensuring that training leads to real self-reliance and strengthening skills development to create meaningful employment opportunities,” he said while speaking at a function in the city on Sunday. Above all, the State Minister said their core priority is job creation and supporting the innovative potential of young people, especially young women. The government with support from the United Nations Development Programme (UNDP) and Plan International Bangladesh, inaugurated the National Action Plan (NAP) to operationalise the Youth Entrepreneurship Development Policy 2025. Youth and Sports Secretary Md Mahbub Ul Alam said the government can create only 70 lakh jobs. He said this leaves many educated young people struggling with unemployment, which may contribute to social unrest. “This Action Plan must take a holistic approach. We need to adopt a bottom-up approach and organise workshops in other divisions as well to make the process inclusive,” said the Sports Secretary. Acting Resident Representative, UNDP Bangladesh Sonali Dayaratne said the Youth Entrepreneurship Development Policy 2025 and its National Action Plan provide a timely opportunity to strengthen the ecosystem that enables young entrepreneurs to transform ideas into thriving enterprises. “By expanding access to finance, skills, mentorship, and markets, while ensuring inclusion for young women, rural youth, and other underserved groups, we can unlock the full potential of youth entrepreneurship and contribute to a more resilient and prosperous Bangladesh." Country Director, Plan International Bangladesh Kabita Bose emphasised the importance of inclusivity and equitable access for youth. “We want young people not only to participate, but also to lead these initiatives. We hope this plan will not be city-centric, and ensure the leadership of women, members of ethnic minorities and marginalised communities,” she said. The workshop included technical sessions on the strategic overview of the Youth Entrepreneurship Development Policy 2025, the NAP formulation process, and stakeholder consultations to gather input from diverse actors, ensuring the plan is inclusive and actionable, according to UNDP.    

Bangladesh's macroeconomy remains deeply fragile, battered by a Fitch rating downgrade, stubbornly high inflation, record low private credit growth, and a looming fiscal shortfall, the Policy Research Institute of Bangladesh (PRI) warned on Thursday, calling for sweeping productivity-enhancing reforms ahead of the national budget for fiscal year 2026-27. Dr Ashikur Rahman, Principal Economist of PRI, revealed the grim picture of the economy while making the keynote presentation at an event to launch the institute's Monthly Macroeconomic Insights titled “Restoring Growth through Productivity Reforms: Pre-Budget Priorities” at the PRI conference room at Banani. In a fresh blow to investor confidence, Fitch Ratings has revised Bangladesh’s long-term sovereign outlook to “Negative” from “Stable”, while affirming the rating at “B+”, according to the report. The agency cited rising external vulnerabilities from Middle East exposure, weak reserves, persistently low revenue at around 7.9 percent of GDP, elevated inflation near 9 percent, banking sector fragility with NPLs above 30 percent, and stalled institutional reforms. BERC Hearing: Stakeholders reject BPDB proposal to hike bulk power prices by up to Tk 1.50 per unit According to the PRI, the GDP growth stood at 3.49 percent in FY25. For FY26, the International Monetary Fund projects a modest recovery to 4.7 percent, while the World Bank, Asian Development Bank, and Fitch estimate more conservative figures of 3.9 percent 4.0 percent, and 3.7 percent respectively, citing fuel price pressures, weak investment, and slowing exports. Private investment dropped to 22 percent of GDP in FY25, its weakest level in 11 years. Foreign Direct Investment, at just 0.3 percent of GDP, continues to lag far behind regional peers Vietnam, Indonesia, and India, it said. Inflation re-accelerated above 9 percent in April 2026, driven by higher transport costs and non-food price pressures linked to US-Iran geopolitical tensions. With the policy rate held at 10 percent, the real policy rate stands at only 0.96 percent, well below the Monetary Policy Committee's own target of 3 percent and among the lowest in South Asia, undermining the central bank's ability to anchor inflation expectations. The PRI further warned that recent measures by Bangladesh Bank, including special credit windows and relaxed single-borrower lending limits for large corporates, are effectively diluting monetary tightening and sending mixed policy signals. Private sector credit growth collapsed to a historic low of 4.72 percent in March 2026. Banks have increasingly shifted into government securities, with net borrowing via treasury bills reaching Tk 132 billion in April alone, a classic crowding-out dynamic squeezing productive lending. On the fiscal front, the revenue collection by the National Board of Revenue (NBR) reached Tk 3.3 trillion by April FY26, only 65 percent of the revised annual target. To meet the full-year goal, the NBR will need to collect an implausibly high Tk T 1.76 trillion in the final two months alone. Even under optimistic scenarios of 15-30 percent revenue growth in May-June, the projected shortfall ranges between Tk 782 billion and Tk 895 billion. Interest payments consumed 21.4 percent of total government expenditure in FY25, up sharply from 14.4 percent in FY10. Subsidies crossed Tk 1 trillion in FY25 and are projected to rise further to Tk 1.16 trillion in FY27, absorbing 12.5 percent of the total budget despite IMF pressure for rationalisation. ADP implementation remained chronically weak at 36.2 percent in July-March FY26. After eight consecutive months of decline, goods exports rebounded 33 percent year on year in April to nearly US$ 4 billion, a rare bright spot. However, cumulative exports in July-April FY26 remained 2 percent below the same period last year, weighed down by a 2.8 percent contraction in RMG shipments and persistent energy shortages.   Remittances stayed above $ 3 billion for the fifth consecutive month in April, reaching $ 3.13 billion, up 13.6 percent year on year. Forex reserves crossed $ 30 billion in April, providing roughly five months of import cover.   However, the PRI cautioned that rising global energy prices could erode these gains.   The PRI presentation laid out six productivity-enhancing reform pillars it considers essential for restoring growth: deregulation and investment climate improvement, energy sector reform, SOE restructuring and selective privatisation, trade policy reform and tariff rationalisation, proactive FDI promotion, and sustained investment in critical infrastructure.   On fiscal reform, the report called for raising the tax-to-GDP ratio to 15-20 percent over 10 years, targeting a 50:50 direct-to-indirect tax ratio by 2035, and capping the personal income tax marginal rate at 25 percent while reducing the corporate tax rate to 15 percent for qualifying firms.   “Sustainable growth will depend less on stimulus and more on productivity, investment, institutions, and efficient use of resources,” the presentation concluded.   The event was chaired by PRI Chairman Dr Zaidi Sattar. END/UNB/MM/AM

Dhaka Chamber of Commerce and Industry (DCCI) on Saturday unveiled its Economic Position Index (EPI) for the second quarter of FY2026 (October–December 2025), revealing that Dhaka's economy recorded a moderate overall score of 0.50, reflecting visible advancement but persistent structural weakness particularly in the manufacturing sector. The index was presented by DCCI Acting Secretary General Dr AKM Asaduzzaman Patwary at the DCCI auditorium in the capital. The EPI, calculated as the geometric mean of three sectoral scores, showed a sharp divergence across sectors. Agriculture topped the index with a high score of 0.80, driven by significant growth in crop and fish production, though livestock output recorded a marginal 4.8 percent decline due to seasonal factors. The services sector scored 0.47, reflecting moderate improvement, while manufacturing registered a low score of 0.33, indicating severely weak industrial activity. “Moderate improvement indicates a visible advancement in economic activities in Dhaka with no sign of heavy stagnation,” the report stated. “The economy heads towards a positive trend in the last quarter of 2025.” However, DCCI's strategic assessment struck a cautionary note, describing the economy as “consumption-led rather than production-led” and “stable on the surface but deeply imbalanced underneath.” The index, developed by DCCI as a quarterly economic monitoring tool, draws on a survey of 762 respondents, 330 from manufacturing and 432 from the services sector, across selected industries in Dhaka district, which contributes 46 percent to Bangladesh's GDP. The survey was conducted between January 11 and February 4, 2026, and covered Q1 (July–September FY2026) and Q2 (October–December FY2026) data. Sectors assessed include agriculture (crops, fisheries and livestock), manufacturing (RMG, textiles, food, pharmaceuticals, leather and others) and services (wholesale trade, real estate, land transport, health and banking). Sub-sector weights were assigned based on gross output and gross value added shares aligned with FY2025 GDP contribution. The report catalogued a range of recurring sectoral bottlenecks. Manufacturing faces energy shortages and unpredictable tariffs, a severe letter of credit liquidity crisis, a 15 percent VAT described as regressive, port-level lead-time delays and widespread demands for unofficial payments. Agriculture grapples with post-harvest losses from inadequate cold-chain infrastructure and a lack of irrigation access in northern districts. The services sector is burdened by record inflation dampening consumer demand, rising operational costs and systemic exclusion of small businesses from formal credit. DCCI called for a suite of targeted interventions. For manufacturing, it recommended an immediate launch of MSME loan facilities at nine percent or below, uninterrupted gas and power supply to industrial zones, a temporary reduction of VAT to between five and ten percent to boost export competitiveness, and customs fast-track measures at ports. For agriculture, it urged the development of a cold-chain network, irrigation scale-up in northern districts and real-time digitisation of field-level reporting under the Department of Livestock Services and Department of Fisheries. For services, it proposed a one-stop digital licensing hub to eliminate unofficial fees, anti-syndicate market monitoring and low-interest, collateral-free credit for small businesses. The index is also intended to inform Bangladesh Bank's monetary policy stance, quarterly fiscal adjustments and periodic revision of industrial policy, according to DCCI. DCCI positioned the EPI as a significant addition to Bangladesh's macroeconomic toolkit, noting that existing instruments such as GDP and the Quantum Index of Industrial Production fail to provide real-time private-sector sentiment or capture short-term fluctuations and seasonality. The chamber said the index would be published every quarter to track evolving economic momentum, particularly in the context of Bangladesh's LDC graduation preparations.

Bangladesh’s economy is grappling with intensifying pressure from multiple fronts  including the Middle East conflict and a volatile energy market which experts warn could destabilise macroeconomic stability. Dr. M. Masrur Reaz, chairman of think-tank Policy Exchange Bangladesh, told UNB that recent geopolitical tensions have sparked fresh concerns over energy security, threatening to disrupt power generation, industrial output, and the agricultural sector. A former World Bank economist, Dr. Reaz said the combination of internal structural weaknesses and external shocks poses a significant challenge for the government. “Middle East conflict and energy volatility, the escalating military activity involving the US, Israel, and Iran has sent ripples through the international energy market. Analysts fear that a prolonged conflict will lead to severe supply chain disruptions,” he added. Crucially, uncertainty of free vessel movement in the ‘Strait of Hormuz’ and Qatar Energy has reportedly declared "Force Majeure" on several long-term Liquefied Natural Gas (LNG) supply contracts due to production setbacks. This development threatens gas supplies to major economies like South Korea, China, and parts of Europe, potentially driving up global oil and gas prices. For an import-dependent nation like Bangladesh, this translates into higher transport costs and immediate inflationary pressure on essential goods, said economic analysts Dr. Reaz. Domestic supply concerns amidst global volatility, domestic fuel supply has come under scrutiny. Despite reports of long queues at petrol pumps and claims of shortages from pump owners, the government maintains that stocks are sufficient, he pointed out. Minister for Power, Energy and Mineral Resources, Iqbal Hasan Mahmud Tuku, attributed the pressure to "panic buying." He urged citizens to avoid unnecessary hoarding, assuring that supply would remain steady if demand followed normal patterns. Economists warn that fuel shortages will hit every sector of the economy. Gas-dependent sectors such as RMG, textiles, cement, and fertilizer face production cuts, which could shrink export earnings and deplete foreign exchange reserves. Scarcity of diesel and octane threatens irrigation and mechanized farming, raising fears of reduced food production. Increased production and transport costs are expected to drive the cost of living even higher. Politicians and Experts warning that the political landscape is also reacting to the crisis, which would be affected living cost of people. BNP Secretary General Mirza Fakhrul Islam Alamgir warned that the Middle East war could have a devastating impact on the national economy, specifically citing the inevitable rise in oil and commodity prices. Dr. Debapriya Bhattacharya, Distinguished Fellow at the Centre for Policy Dialogue (CPD), described the energy and banking sectors as the "two lungs" of the economy—both of which are currently in a weakened state. He emphasized that the government must prioritize four areas: maintaining macroeconomic stability, reforming the banking sector, ensuring energy security, and boosting private investment. CPD reports a decline in private sector credit flow due to high interest rates. The closure of several industries and the migration of some entrepreneurs have exacerbated the employment crisis. Furthermore, the banking sector remains high-risk due to a massive volume of non-performing loans (NPLs) and a lack of good governance. Experts suggest that to mitigate these pressures, Bangladesh must intensify domestic gas exploration, find cost-effective LNG sources, and implement rigorous banking reforms. Whether the current administration can navigate these global and domestic hurdles remains the primary focus of the nation’s economists and business community.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury on Tuesday said there was no problem anywhere because the government took the right decision at the right time in economic management. “Ramadan began after the current government came to power and the war began. There was a fuel oil crisis due to the war, but despite the fuel crisis, there was no transportation crisis during Eid this time, transport fares did not increase, people were able to go home and return without any problems,” he said. This time, the Minister Said, commodity prices were also stable during Ramadan. This time, there was no unrest over the salaries of garment workers. The salaries of the workers were paid on time from the garment factory, so no problem arose. The Finance Minister told reporters after a meeting with Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, according to a Finance Ministry press release. He said that a loan program is underway with the International Monetary Fund and discussions are underway to advance the program. The conditions against the program will be implemented gradually in the context of Bangladesh's economy. He said, 'We cannot do everything at once, we will do it our way. All issues will be discussed at the IMF spring meeting in Washington in April. The Finance Minister said, after taking office, we have found the previous economy in a bad condition. The banking sector, stock market are in a bad condition and the tax-GDP ratio is also very low. These crises can be overcome through economic reforms and the implementation of the BNP's election manifesto. “We are working on social security programs such as family cards, distribution of farmer cards, agricultural loan waivers, etc. We are taking one step after another to implement them.” Since the time of the interim government, the Finance Minister said, many development projects have been stalled due to economic reasons. “We have discussed these. The economy needs to be taken to a certain place through reforms, for which several steps have been taken.” The Minister said that attention is being paid to deregulation reforms, business facilitation, reducing business costs, etc. to take the economy to a certain place. He said that all these will be reflected in the next budget.      

High bank lending rates, unstable law and order marked by extortion, energy uncertainty and lack of coordination in revenue management are proving ‘suicidal’ for the economy, President of the Dhaka Chamber of Commerce & Industry (DCCI) Taskeen Ahmed said on Monday. Taskeen made the remarks at a press conference titled ‘Expectations from the New Government to Address the Current Economic Situation’ held at the DCCI auditorium in the city. He said the unchanged policy rate has forced businesses to borrow from banks at 16–17 percent interest, creating mounting pressure on the private sector. DCCI urges quick economic recovery measures as BNP forms govt “The high volume of non-performing loans (NPLs) and the reduction of the loan classification period from nine months to three months have further destabilised the financial sector,” the DCCI president said. “Industrial production is being hampered due to inadequate gas supply and the recent increase in gas prices for new industries and captive power plants by Tk 40 and Tk 42 per unit respectively,” he said, mentioning that both domestic demand and export targets are being missed as a result. He warned that the absence of policy continuity in industrial regulations and an “unbearable” level of extortion have eroded investor confidence, affecting both local and foreign investments. The DCCI president also pointed to structural weaknesses in the revenue management system, saying the lack of automation leads to harassment of compliant taxpayers while many remain outside the tax net, depriving the government of due revenue and slowing collection growth. Taskeen said delays in land acquisition, high land prices, a 41 percent average increase in service charges by the Chattogram Port Authority and underutilisation of inland waterways have significantly raised the cost of doing business. “Rising production and distribution costs are also fuelling inflationary pressures.” Prolonged tight monetary policy stalling Bangladesh’s growth: DCCI On Bangladesh’s graduation from the least developed country (LDC) status, Taskeen said estimates by the United Nations Conference on Trade and Development (UNCTAD) suggest exports could decline by 5.5–7 percent, equivalent to around $2.7 billion. Given the current domestic and global economic uncertainties, such a setback would be highly undesirable, he said, urging the government to seek at least a three-year deferment of LDC graduation. Referring to the recently signed agreement with the United States, he said it does not guarantee duty-free access for the ready-made garment sector, while conditions related to LNG and other imports may increase business costs. Taskeen called on the government to renegotiate the terms with the US administration. During the question-and-answer session, the DCCI president stressed the need for effective measures to curb extortion and improve law and order. He noted that over two million educated youths remain unemployed, warning that prolonged joblessness could lead to social instability. He emphasised strengthening skill development programmes, simplifying business procedures and ensuring easier access to bank loans, particularly for young entrepreneurs and startups. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and members of the Board of Directors were present at the event.

Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday said Bangladesh’s economic policy must be people-centred and inclusive, stressing the need to create equal opportunities for citizens from all walks of life to participate in economic activities. He made the remarks while speaking at a reception ceremony for newly appointed ministerial colleagues at the conference room of the ministry. The finance minister said the country must build an economy where participation from every segment of society is ensured, as broader engagement would help bring meaningful changes to the overall economic landscape. Finance Minister Amir Khosru unveils ambitious reform plan on day one “A level playing field must exist in the economy so that every citizen has the opportunity to contribute and benefit from growth,” he said. Referring to the changing public mindset after August 5, he said economic policies and activities must align with the evolving expectations of people. As a first step, he emphasised the need to address the poor condition of state institutions. “Our priority should be to recover institutions and strengthen them,” he said. He said that professionalism, transparency and efficiency must be restored across public bodies to ensure effective governance and sustainable economic progress. The minister also underscored the need to move away from a patronage-based economic model towards a more democratic and participatory one. To achieve this, he called for deregulation and liberalisation, alongside efforts to diversify the economy beyond a narrow dependence on manufacturing. Economy suffering from ‘overregulation’, says Amir Khosru He said sectors such as sports, culture and other professions should be integrated into economic planning to create wider opportunities and generate new sources of income. Giving an example, he referred to the traditional ‘shital pati’ (woven mat) produced in Barishal, which usually sells for Tk600 to Tk700. If artisans are provided with training, access to credit and online marketing facilities, they could develop new designs and produce a variety of products, potentially creating a large market and boosting their incomes, he noted. At the event, Khasru said the country’s economic framework should be developed in line with the 31-point programme of Prime Minister Tarique Rahman, calling for the establishment of a democratic economic system that ensures fairness and inclusivity. The finance minister sought cooperation from officials at all levels to move the country’s economy forward and implement reforms effectively. Among others present at the programme were Bangladesh Bank Governor Ahsan H Mansur and Finance Division Secretary Dr Khairuzzaman Mozumder, and secretaries and senior officials from various divisions of the Ministry of Finance.

As Bangladesh prepares for the formation of a new government following the 13th national election, expectations are running high among depositors, investors and job seekers seeking relief from prolonged financial strain. The BNP-led alliance is set to assume office amid mounting economic pressures, with questions swirling over who will take charge of the finance ministry and what policy direction the new administration will adopt to tackle banking fragility, stubborn inflation and sluggish job creation. For Abdul Hamid, a retired government employee, said the stakes are deeply personal. He has been unable to recover Tk 24 lakh that he placed as a fixed deposit in a private bank. “I expected the new government that they will return my Tk 24 lakh, which was fixed and deposited in a private bank. But the bank fails to pay me the principal amount and benefits,” Hamid told UNB. He said many depositors in several private sector banks face similar hardship, with institutions unable to repay funds, leaving families struggling due to a lack of liquidity. Stock market investors are also looking for signs of a turnaround. Golam Azad, 45, invested around Tk 35 lakh in 2007 after being encouraged by a friend to seek higher returns. He suffered losses during the stock market scams of 2010 and 2011 and has since waited for a sustained recovery. Azad said he hopes the incoming democratic government will take meaningful steps to support market stability and protect investors. Young graduates represent another anxious constituency. Washim Habib, who completed his degree at a public university in 2021, has sat for the Bangladesh Civil Service (BCS) and other government recruitment examinations but remains unemployed. Habib said he is seeking employment in either the public or private sector, noting that his elderly parents can no longer continue to support his expenses. He expressed hope that the new democratic government will create opportunities to help him secure suitable work. Finance Adviser Flags Structural Challenges Against this backdrop, Dr. Salehuddin Ahmed, Finance Adviser to the interim administration, has issued a pointed warning about the scale of the economic challenges awaiting the next leadership. New MPs, cabinet members to be sworn in Tuesday Speaking to reporters at the Bangladesh Secretariat, he said the primary mission of the incoming government must be revitalising trade and industry while strengthening financial institutions to ensure long-term stability. Job creation, he stressed, is central to restoring economic momentum. “If business does not expand, employment will not be generated. And without employment, the purchasing power of the people will remain weak. This is one of the biggest challenges,” he said. He urged policymakers to foster a vibrant private sector, arguing that the country’s industrial base remains relatively small and overly dependent on exports. Inflation and Banking Sector Strains Inflation, he said, remains a “multidimensional problem” that cannot be resolved through monetary policy alone. While the interim administration has introduced several measures, broader and more comprehensive steps will be required to provide relief. On banking sector reform, the adviser acknowledged that reorganisation efforts are under way but cautioned that “difficult decisions” lie ahead. He praised recent initiatives by the central bank governor but noted that credit flow remains constrained and full public confidence in the banking system has yet to return, despite a recent uptick in deposits. Capital Market and Energy Reform To reduce overreliance on banks, Dr Salehuddin called for deeper capital market development. “If we cannot develop the capital market, trade and commerce will not grow by relying solely on banks. Equity participation through the stock market and a strong bond market, especially for the private sector, are essential,” he said. He said regulatory reform efforts are being slowed by legal complexities and ongoing court challenges. The energy sector, he warned, poses a 'major long-term challenge'. He called for intensified domestic exploration, including offshore drilling, and expressed disappointment at the slower-than-expected progress in solar energy development. The insurance sector, he said, remains another 'sensitive area' where reform momentum has been limited despite various initiatives. As the new administration prepares to take the oath of office, its first 100 days are likely to be defined by how effectively it can stabilise markets, restore investor confidence and translate high public expectations into tangible economic gains, economists said.

Calling logistics a foundational pillar of modern economies, Syed Ershad Ahmed, President of AmCham Bangladesh, said efficient logistics systems are essential for sustaining supply chains, supporting economic growth, and ensuring the continuity of everyday life. The global logistics landscape is being rapidly reshaped by forces such as AI and automation, decarbonization and fuel transitions, geopolitics, regionalization, and supply chain resilience, and stressed the need to bridge existing knowledge and capacity gaps to better support the country’s growing trade and investment needs, he said. The AmCham President made the remarks at a focus group discussion titled “Framing the Logistics Sector Landscape: Challenges, Opportunities, and the Way Forward,” held at a city hotel on Tuesday. Read More: AmCham honours Khaleda Zia as legacy of an exemplary leader Drawing on over three decades of professional experience, he noted that while Bangladesh’s logistics sector has evolved, it continues to lag behind regional competitors and remains poorly understood domestically. M. Masrur Reaz, Chairman, Policy Exchange Bangladesh, highlighted key challenges and opportunities in Bangladesh’s logistics sector, affirming its critical role in trade competitiveness through cost reduction, faster delivery, and efficiency gains. Referring to the Chattogram port labor strike, he illustrated how logistics disruptions can severely impact the national economy, noting that logistics infrastructure and port capacity expansion will be crucial to supporting the projected GDP of USD 760 billion by 2030, while a 1% reduction in logistics costs could increase exports by around 7%, particularly as Bangladesh approaches LDC graduation.  He also identified major implementation gaps in the National Logistics Policy, including government monopolies in rail and air cargo, weak inter-ministerial coordination, and the absence of central logistics authority. Read More: AmCham dialogue stresses urgent reforms to boost investment competitiveness Seasoned entrepreneur Mahbubul Anam, Managing Director of CF Global, outlined key challenges in air logistics and express courier operations, emphasizing the need for stronger public–private coordination, supportive policy frameworks, stakeholder-informed infrastructure planning, and adequate equipment. He stressed the importance of cost rationalization, capacity expansion, efficient courier services, and robust contingency arrangements to support time-sensitive shipments, particularly as e-commerce-driven demand for express logistics continues to grow. He noted that logistics costs at Dhaka airport are 20–25% higher than those of road transport and underscored that stronger public–private cooperation is essential to address these constraints. Nusrat Nahid Babi, Senior Transport Specialist, South Asia, The World Bank, said that Bangladesh’s logistics reform momentum since 2022 must be reaffirmed by the new government through clear priorities and high-level consensus. She outlined a phased reform agenda structured around five thematic pillars: policy and procedural simplification; multimodal logistics infrastructure and connectivity; skills and institutional capacity development; supply-chain digitalization; and investment in logistics. Other speakers and the overall discussion emphasized the need to move decisively from policy intent to implementation, including ratification of the National Logistics Policy 2025, supported by a clear execution roadmap. Md. Moinul Huq, Citi Country Officer, Bangladesh Citibank, N.A., highlighted the urgent need for customs authorities to operationalise provisions of the Customs Act 2023 by clearly defining electronic document submission and payment modalities. Participants expressed concern about the heavy dependence on RMG exports, slow progress in new infrastructure development, and poor implementation of electronic documentation despite the presence of enabling policies. Read More: AmCham hosts session on Economic and Investment Outlook in Dhaka

Germany’s economy returned to modest growth last year after two consecutive years of contraction, official data showed Thursday, raising expectations that government investment in infrastructure and defense could help break years of stagnation. The country’s gross domestic product (GDP) grew by 0.2% in 2025, driven by stronger consumer and government spending, while exports remained subdued due to tougher U.S. trade policies under President Donald Trump, the German Federal Statistical Office reported. This followed GDP contractions of 0.5% in 2024 and 0.9% in 2023. “Germany’s export sector faced significant headwinds from higher U.S. tariffs, a stronger euro, and growing competition from China,” said Ruth Brand, head of the statistics office, in a statement. Looking ahead, analysts expect slightly stronger growth this year as Chancellor Friedrich Merz’s government ramps up infrastructure spending to address years of underinvestment. Defense expenditure is also rising amid heightened security concerns following Russia’s invasion of Ukraine. Read more: Germany to increase its funding contribution to Saidabad WTP Phase III project Germany has faced extended economic stagnation since the COVID-19 pandemic. Rising energy costs from the Ukraine war, growing competition from China in key sectors such as automobiles and industrial machinery, higher tariffs on EU goods imposed by the U.S., and a stronger euro have all weighed on the export-driven economy. Structural challenges, including bureaucratic hurdles and a shortage of skilled labor, have also constrained growth. Preliminary data indicate that the German economy expanded by 0.2% in the final quarter of 2025. A group of leading economists has projected 0.9% growth for 2026, though they caution that slower-than-expected government spending could limit the recovery.