Dhaka, Jan. 1 -- Bangladesh's economy is ending the year on a divided note, with hard-won stability in the external sector offset by a deepening crisis of confidence at home, as weak investment, soaring bad loans and political uncertainty continue to restrain growth.

Analysts say decisive policy actions have helped calm foreign exchange markets and rebuild reserves, but the broader economy remains trapped in a cycle of high inflation, tight credit and a fragile banking system, delaying any meaningful recovery.

The taka has strengthened markedly after touching Tk132 per US dollar under the previous administration, now trading near Tk122.

Authorities have tightened oversight on money laundering and intensified action against illegal hund...