Dhaka, Nov. 4 -- Private sector credit growth in Bangladesh dropped to 6.29 percent in September the weakest pace in four years, according to recently released Bangladesh Bank data. The deceleration has continued since early August 2024 as lending demand from businesses remains sluggish.
Economists say the slowdown reflects stagnation in new business ventures and subdued private investment. While improvements in foreign exchange reserves have offered some reassurance, lingering political uncertainty is causing foreign investors to remain cautious.
A senior Bangladesh Bank official expressed optimism for a rebound after national polls and the formation of a new government.
"Once the political situation stabilises and investment resumes, i...