Inflation, unrest challenge Bangladesh's economy

23 September 2022
2022-09-23 15:42

Bangladesh's economy is under severe strain as fuel price hikes amplify public frustrations over rising costs for food and other necessities. The government raised fuel prices by more than 50% last month to counter soaring costs due to high oil prices.

That triggered protests over the rising cost of living. Authorities have ordered the subsidized sales of rice and other staples by government-appointed dealers.

The economy is forecast to grow at a 6.6% pace this fiscal year, according to the Asia Development Bank's latest forecast, and the country's total debt is still relatively small. Bangladesh's external debt is under 20% of its gross domestic product, while Sri Lanka's was around 126% in the first quarter of 2022.

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