The International Chamber of Commerce – Bangladesh called for a strategic move to navigate the challenges the country might face in 2025.
Mahbubur Rahman, president of the ICCB, revealed this while speaking at the 30th Annual Council of the chamber on Saturday in the capital.
He also said that as the world continues to face a volatile mix of geopolitical tensions, climate risks, and economic disruptions, Bangladesh needs to adapt to these challenges strategically.
In presenting the report, he also noted that the global backdrop remains unstable, marked by the Red Sea crisis, ongoing wars in Ukraine and the Middle East, and a resurgence of economic nationalism, particularly following Donald Trump›s return to the U.S. presidency.
He also stated that the global economy is expected to grow by just 2.8 per cent in 2025, with the US–China trade war further exacerbating uncertainties.
Moreover, inflationary pressures and protectionist policies risk might fragment global supply chains, an alarming trend for developing economies such as Bangladesh.
In this context, Bangladesh’s economy would face significant headwinds as the World Bank projected GDP growth to slow to 3.3 per cent in FY2024–25, while the IMF and ADB forecast growth at 3.8 per cent and 3.9 per cent, respectively.
He also said that high inflation, exceeding 10 per cent overall and 14 per cent for food, combined with declining investment and political uncertainty, has deepened the economic slowdown.
He also stated that the fragile state of Bangladesh’s financial sector was another primary concern, with non-performing loans reaching a record Tk 3.45 trillion by December 2024.
Moreover, nineteen banks have reported a capital shortfall of Tk 1.71 trillion, prompting the interim government to initiate banking reforms, including the dissolution of boards, mergers, and enhanced oversight.
Moreover, as Bangladesh is set to graduate from the Least Developed Country status by November 2026, the country is likely to lose preferential trade terms—especially in the RMG sector.
Due to this, the country might face tariffs of up to 11.5 per cent in major markets such as the EU and the UK.
The ICCB emphasised the importance of a transition strategy to safeguard export competitiveness and maintain foreign investment flows.
The annual council also highlighted the challenges in several key sectors, including energy, a lower tax-GDP ratio, US tariffs, cybersecurity, FDI, and diversification.
The ICCB also emphasised the potential of the Bangladesh-Bhutan-India-Nepal (BBIN) corridor to enhance regional connectivity and trade.
ICCB President Mahbubur Rahman reiterated its commitment to supporting reform, resilience, and regional integration as key pillars for sustainable economic recovery.
Commerce Secretary Mahbubur Rahman, business leaders from various trade bodies, foreign delegates, and representatives from the development sector, as well as banks and stock markets, were also present.