Economic Challenges in Bangladesh After August 2024: An Analysis of Inflation, Unemployment, And Fiscal Instability

Abstract

This study explores the economic challenges faced by Bangladesh since August 2024, focusing on three critical areas: rising inflation, increasing unemployment, and fiscal instability. Bangladesh has experienced a significant surge in inflation, reaching a 12-year high, primarily driven by global commodity price shocks, currency depreciation, and domestic supply chain disruptions. The unemployment rate has also escalated, particularly among youth and rural populations, due to structural labor market inefficiencies, skill mismatches, and global economic slowdowns. Additionally, fiscal instability, characterized by widening budget deficits, growing public debt, and declining foreign reserves, has strained Bangladesh’s public finances and hindered economic growth.