Policy Brief
This policy brief explores the macroeconomic challenges posed by the politcal upheaval of July-August 2025 and explains that with serious and sustained reform, the country can overcome these hurdles and pursue inclusive growth and development.
The July–August 2024 turmoil that displaced Sheikh Hasina’ s government poses multiple macroeconomic challenges for the interim government and those that succeed it. Without major reform, Bangladesh risks being caught in a low-income trap. However, if the authorities respond seriously and sustainably, the country has multiple pathways for promoting the recovery needed to achieve rapid economic growth and inclusive development.
Our aim is to identify the challenges, examine them, and suggest ways to take advantage of Bangladesh’s opportunities for growth and development. The essay has the following format. Section 2 reviews the current macroeconomic situation and its trajectory. Section 3 highlights the specific macroeconomic issues that will constrain and most likely block the economic recovery that would return Bangladesh to a viable growth path. Section 4 explores the opportunities that will enable Bangladesh to accelerate economic growth and promote inclusive development. Section 5 suggests measures to create the foundation for recovery and the longer-term transformation of the economy. Section 6 has concluding observations. Separate annexes expand on issues raised in the text.
Occasional Paper
This policy paper aims to provide an analysis of the current state of the solar power industry in Bangladesh, identifying the gaps and risks associated with the implementation of the government’s renewable energy goals.
Policy Brief
The challenge in this policy note is to look beyond the transitory factors in Bangladesh that have moved relative prices up (or down) to identify the longer-term factors that generate and sustain general price increases and to explain why those factors endure.
Policy Brief
The tax-to-GDP ratio in Bangladesh has been exceptionally low, both absolutely and relative to the nation’s peers, for the last five decades. An excellent starting point for reform would be the World Bank’s recent proposals for enhanced revenue mobilization, which build upon the long-delayed reforms.
Occasional Paper
This policy paper aims to provide an analysis of the current state of the solar power industry in Bangladesh, identifying the gaps and risks associated with the implementation of the government’s renewable energy goals.
Policy Brief
The challenge in this policy note is to look beyond the transitory factors in Bangladesh that have moved relative prices up (or down) to identify the longer-term factors that generate and sustain general price increases and to explain why those factors endure.
Policy Brief
The tax-to-GDP ratio in Bangladesh has been exceptionally low, both absolutely and relative to the nation’s peers, for the last five decades. An excellent starting point for reform would be the World Bank’s recent proposals for enhanced revenue mobilization, which build upon the long-delayed reforms.
