Economy

Economic Crisis Avoided, but Inflation Continues to Burden Low-Income Groups: CPD

Written by The Banking Post


The Centre for Policy Dialogue (CPD) has said Bangladesh managed to avert a major economic crisis following the formation of the interim government, but persistent high inflation continues to strain the country’s poor and low-income households.

“Achieving economic stabilisation and recovery was one of the urgent priorities,” CPD Executive Director Fahmida Khatun said yesterday at a dialogue on 365 Days of the Interim Government held at the Lakeshore Hotel in Dhaka.

She noted that public expectations had been high for restoring democratic processes, reforming state institutions, and stabilising the economy, as the interim administration inherited a fragile economic landscape marked by slow growth.

According to Fahmida, the economy is now on a path to gradual stabilisation, with declining risks representing “one of the biggest achievements” so far. However, she cautioned that substantial reform initiatives are unlikely in the run-up to the national elections scheduled for February 2026.

“Consolidating the gains achieved and addressing the economy’s underlying weaknesses should now be the priority,” she said, adding that reform momentum has been sluggish.

The think tank assessed 38 key issues using a green-yellow-red scorecard, with nine areas rated green.

The CPD also pointed out that despite recommendations from the White Paper Panel and the Task Force on restrategising the economy, no concrete steps have been taken, and the proposed measures remain unimplemented.


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