Overview
Bangladesh is a densely populated, rapidly industrializing South Asian economy of ~170+ million people. Growth has been driven by export-led manufacturing—especially ready-made garments (RMG)—alongside remittances, infrastructure build-out, and a steadily formalizing services sector.
Macro headwinds in recent years (FX pressures, energy import costs, inflation) and governance challenges have tested resilience, yet demographics, cost advantages, and evolving logistics corridors keep Bangladesh on many operators’ radar ahead of its planned graduation from LDC status.
Political Landscape
Bangladesh is navigating a volatile transition following the July–August 2024 “Monsoon Revolution”, which ended Prime Minister Sheikh Hasina’s 16-year rule. The opposition-backed interim administration, led by Nobel Peace laureate Muhammad Yunus, has pledged to restore institutional integrity and deliver the country’s first competitive elections in over a decade.
The interim government has set February 2026 as the date for new elections, but political polarization, weakened state capacity, and factional rivalries continue to test stability. In the near term, the key variables will be the government’s ability to maintain order, rebuild confidence in the electoral process, and prevent a resurgence of military influence or partisan violence as Bangladesh approaches the 2026 vote.
Social Context
Bangladesh is young, urbanizing (Dhaka, Chittagong), and increasingly literate, with a large low- to mid-skill workforce that underpins manufacturing competitiveness and a growing cadre of ICT talent. Remittances are a social and macroeconomic stabilizer.
Until now, Gen Z and Millennials – 60% of the population and 42% of voters – have not had a chance to cast their votes in a real election and they are hungry for real reforms.
Disaster resilience is high by necessity: communities and authorities manage recurrent floods and cyclones, but climate risk (riverine/coastal erosion, salinity, heat) remains a structural challenge with direct implications for supply chains and ESG.
Economic Environment
The economy is export-oriented and labor-intensive:
- Manufacturing: RMG accounts for the majority of exports; upstream textiles, leather, light engineering, and pharmaceuticals are growing.
- Energy & Power: rising power demand; exposure to imported fuels and LNG affects costs and reliability.
- Infrastructure & Logistics: new bridges, expressways, and planned deep-sea port capacity aim to ease congestion (Chittagong) and reduce lead times.
- Services & ICT: BPO/IT services, fintech, and mobile-enabled commerce expanding from a low base.
IMF-linked reforms and FX management aim to stabilize external balances. Access to FX, LC issuance, and payment timelines can be pain points; customs procedures and local content/standards add operational friction.
Key Challenges
- FX and inflation pressures affecting inputs, pricing, and payment terms
- Regulatory discretion, licensing variability, and uneven contract enforcement
- Supply-chain and labor rights scrutiny across the garment ecosystem (ESG/reputation)
- Logistics bottlenecks (port/road congestion) and occasional power reliability issues
- High exposure to climate risk and disaster disruptions
Opportunities
- Cost-competitive manufacturing with room to move up the value chain (technical textiles, apparel design, footwear, pharma generics)
- Supplier consolidation and traceability solutions to meet buyer ESG requirements
- Infrastructure, logistics, warehousing, and cold-chain build-out
- Digital services (BPO/IT), fintech enablement, and e-commerce support
- Climate adaptation, renewables, and resilience projects with multilateral backing
Services Provided in Bangladesh
- CBI Checks
- Corporate Due Diligence
- Litigation Support
- Geopolitical Risk Assessments
- Strategic Advisory
- Market Entry
- Stakeholder Mapping
- Scenario Planning
- Thematic Research
Talk to an Analyst
Our discreet, field-informed intelligence helps you navigate Bangladesh’s fast-moving market—aligning partners, compliance, and strategy for durable results.