Robust economic growth, remittances received from expatriates, a boost in exports and the vision of the leadership were the major factors behind the turnaround of Bangladesh’s economy in the past year. The success is impressive but the growth was akin to a kite not attached to its string and spool in the absence of visible government steps to get banks out of their difficulties. The point, however, the government needs to ensure how to carry forward this success story throughout the rest of the year. Additionally, rescuing the public banks out of difficulties will be another big challenge for the government.

However, despite a set of setbacks it is encouraging to note that even in the face of a global recession, Bangladesh has recorded an estimated 8.1 per cent GDP growth in 2019, according to a World Bank report. The country has also climbed up a spot to 135 among 189 countries in the 2019 Human Development Index, according to a United Nations Development Programme report.

The growth is commendable since it almost matches the performance of neighbouring countries India (130) and Bhutan (134). This performance even leaves behind other neighbouring countries like Myanmar (145), Nepal (147), Pakistan (152), and Afghanistan (170) in the region. Apart from the sunny side of surveys, analysis and reports on our economy, there is also a worrying side. Lack of good governance and reforms has put the country’s economy under the most severe strain that it has faced the last decade. The fault lines in the economy are getting deeper and need to be addressed urgently otherwise, the country’s economic growth cannot be sustained in the years ahead of the new decade. And that’s not all – the number of private loans had dropped, liquidity crisis had deepened, and a cap on the deposit and lending rates had not produced desired results.

We believe the government’s authorities concerned, especially Bangladesh Bank, economy and finance departments will take effective and appropriate decisions to address the challenges as early possible in the New Year.