How Bangladesh economic factors contributed to Sheikh Hasina's downfall

Sheikh Hasina file photo

Bangladesh is currently facing two major economic challenges: high inflation, which has surged past 9%, and a significant devaluation of its currency, the taka. These issues have exacerbated the country's economic difficulties in the wake of the Covid-19 pandemic, which severely disrupted an economy heavily reliant on textile exports.

Despite a post-pandemic recovery, growth is expected to remain below 6% in 2024.

This marks a sharp contrast to the period between 2011 and 2019, when Bangladesh experienced steady development. During that time, GDP grew at a consistent rate of around 6%, inflation dropped below 6% after 2016, and GDP per capita more than doubled, rising from $1,032 in 2011 to $2,154 in 2019.

However, the current economic struggles, including depleting foreign exchange reserves and rising unemployment, have fuelled youth unrest and the subsequent toppling of the Sheikh Hsina regime.

Fir the newly formed interim government of Bangladehs, the top priority is to bring the economy back on track and restore the people's trust in the banks, finance and planning adviser Salehuddin Ahmed was cited in a PTI report.

Former Bangladesh Bank governor Ahmed was entrusted with the charge of the finance and planning ministries by interim leader Muhammad Yunus, who announced the portfolios of his 16-member council of advisors on Friday.

"Then we'll work on bringing reforms," state-run news agency Bangladesh Sangbad Sangstha (BSS) quoted him as saying.

"For various reasons, the country's economy has slowed down. Our goal will be to revive the economy as quickly as possible. Once the economy comes to a standstill, it becomes quite difficult to restart it. We do not want it to come to a halt," he said.

Bangladesh's economy has various problems currently, including issues in the banking sector and inflation.