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Markets / South Asia

Bangladesh

Political rebuilding after the 2024 transition, LDC graduation, the garment economy and energy constraints.

Overview

A garment export powerhouse rebuilding its politics after 2024, while graduating from least developed country status.

Bangladesh is one of the world's largest apparel exporters and one of Asia's fastest-growing economies of the past two decades. The 2024 uprising and the transition that followed reset its politics, and the government formed after the February 2026 election inherits difficult questions on institutions, the banking sector and energy supply.

Bangladesh is also scheduled to graduate from least developed country status, which will change its trade preferences in Europe and elsewhere over the following years. We help buyers, investors and institutions understand what these shifts mean for them.

TransitionLDC graduationGarmentsBanking
What we watch

The issues that move the risk picture.

  • Politics after the transitionGovernment stability, institutional reform, accountability processes and the role of the street.
  • LDC graduationThe transition out of least developed country trade preferences, and the arrangements that replace them.
  • Garment sector riskWages and labour unrest, factory compliance, energy supply to industry and buyer due diligence obligations.
  • Banking and the macro economyBank sector clean-up, foreign exchange reserves and IMF programme conditions.
  • Regional relationsRelations with India, China and Myanmar, and the Rohingya refugee situation.
Questions we answer

Typical client questions

A selection of the questions clients bring to us on Bangladesh.

  • What does LDC graduation mean for our sourcing costs from Bangladesh after the transition period?
  • How likely is renewed labour unrest in the garment belt over the next year?
  • Which policy commitments of the new government are likely to survive contact with reality?

Discuss Bangladesh with an analyst.

Book a free 30-minute briefing call. We will give you an initial view where we can, and a written scoping note within two business days.

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