Bangladesh’s private sector credit growth dropped to 6.10 percent in December 2025, a four-year low, missing the central bank’s 7.2 percent target amid election uncertainty that has frozen investment, Bangladesh Bank data shows.
The decline from 6.58 percent in November and 6.5 percent in June 2025 reflects entrepreneurs’ wait-and-see approach ahead of the February 12 national elections.
Ashikur Rahman, Principal Economist at the Policy Research Institute, said businesses are delaying investments to assess post-election stability.
Mohammad Ali, Managing Director of Pubali Bank PLC, cited stagnant investment and slow public project implementation, projecting recovery in May-June post-elections.
Bangladesh Bank identified weak non-bank borrowing and contractionary monetary policy as additional factors. The IMF warned that high non-performing loans and undercapitalization will further restrict credit and slow growth
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