The employment in the country is shrinking

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The employment in the country is shrinking

There is no alternative to new investment to keep the country’s economy strong and eliminate unemployment. The biggest blow to the economy in 2024 was political instability and uncertainty. Especially in the manufacturing industry. This has had a serious impact on investor confidence. As a result, investment in the country has decreased rather than increased in the outgoing year. Foreign investment is also negative.There is no alternative to new investment to keep the country’s economy strong and to eliminate unemployment. The biggest hit to the economy in 2024 was political instability and uncertainty. Especially in the manufacturing industry. This has had a severe impact on investor confidence. As a result, investment in the country has decreased instead of increasing in the outgoing year. Foreign investment is also negative.

Economists and businessmen fear that the economy may face major problems if this trend continues. They are worried about investment and employment in the new year. Those involved in the sector believe that if investment does not pick up, the country’s economy will not recover and GDP growth will not be sustained.

Dr. Zahid Hossain, former chief economist at the World Bank Dhaka office, told media “If the political environment in Bangladesh remains unstable even in 2025, it could become an obstacle to investment flow. Investors do not want to invest in an environment where there is political instability and uncertainty in government decisions.”

According to Bangladesh Bank, the growth of credit in the personal sector in October 2024 was 8.30 percent, which is the lowest in the last 40 months. The growth of credit in the personal sector was 8.30 percent in October 2023. The concern is that the growth of credit in the personal sector has been declining continuously for the last few months.

He said, “We hope the government will ensure improvement in the law and order situation. At the same time, it will restore political stability by holding elections at an early date based on consensus with the political parties.”

 

What businessmen want to see

Mr. Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and managing director of MB Knit Fashion Limited, said, “2024 has been a year of various adversities. We want an opportunity to turn around in 2025. Not new loans, but an opportunity to properly utilize the loans that have been taken. That is what we need the most right now.”

The business leader further said, ‘To overcome this situation, banks will have to provide financial assistance from the Export Development Fund. In addition, the money owed to exporters will have to be paid quickly so that the salaries of workers and other expenses can be met. Like in the past, there may be some major problems with private sector investment in 2025, which may create challenges for the country’s economic development.’

 

Abdullahil Rakib, former senior vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, ‘Adequate infrastructure and energy supply are the main conditions for attracting new investment. Adequate infrastructure for industries in the country, such as electricity and communication systems, is still inadequate in many cases. Due to power and energy shortages, many industries are not able to operate their production activities smoothly.

Fazle Shamim Ehsan, executive president of BKMEA, said, “Traders are not getting loans due to the weak condition of the banking sector. Again, the banks are not able to return the money to the exporters. On the one hand, new investment is hindered and it is also difficult to conduct business. Because they are not getting cash on time as needed.

 

Global economic instability and recession is another challenge.

The normal state of global economy is also important for Bangladesh. If there is global economic instability such as recession or global crisis in 2025, it may affect the foreign investment in Bangladesh.’ said Fazle Shamim Ehsan.

 

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