The Bangladesh Debt Problem, Explained 

The Bangladesh debt's is quite frankly one of the least problematic around the country. Why do you think people fears it? Let us know down below!

I've got a friend in Bangladesh. He says that prices for things had increased a lot since 2020 despite things like income not changing in the least and even many people getting layed off from the workforce. Along side that, the entire country has been facing a lot of power outs these past few months. Despite all the 'growth' that Bangladesh has had(as per claimed by their leaders) the majority of people are living in poverty. Some people have been pushed into it since then as well. He also said something about 2023 not being a good year for their middle and low class citizens because of their government planning something. No clue what he meant though.

Bangladesh really needs to focus on export diversification and this depends on the successful establishment of the upcoming economic zones.

What I noticed is nations whose revenues are mostly tourism based are bound to fail. First Turkey, then Nepal, and now Sri Lanka, those are all nations who rely on tourism.

I think now Bangladesh must look for other heavy industries they can't rely on the textile and remittance.

They buy train sets, airplanes, cars , buses, motorbikes , CPO, Coal , LNG etc and we import from them textiles, shoes, and several products. A lot of our companies invest in their garments and shoes industries. We will do a lot of infrastructure there with Bangladeshi companies for toll roads, railtracks, bridges, malls, big mosques and hotels.

as a bangladeshi I can confirm u that our ppl were really scared after what happened to sri lanka 😅🤣🤣🤣.

Bangladeshi economists are just too smart to fall for any debt crisis by China or any other country. They are pretty much aware of their economic strengths and weaknesses. Still holding an impressive growth with such huge population.

Fact: Bangladesh has never defaulted on its foreign loans till now. Hope: To diversify export from knitwear garments & foreign remittance dependency

Bangladesh doesn't have debt problem at all Bangladesh gone deficit by money laundering, bank scam and market syndicate Otherwise Bangladesh hit by Russia Ukraine war Bangladesh's import risen due to import cost increased badly Global stagflation, fuel crisis and climate effect making Bangladesh towards economic pressure but Bangladesh won't be defaulted IMF, World Bank and ADB all say Bangladesh will have decent GDP growth and have inflation heat due to global recession Bangladesh will recover faster if global crisis decrease by 1 year

Bangladesh is also becoming one of the preferred destination for IT outsourcing, at current rate Bangladesh's IT industry will overtake it's textiles within 10 years. There are problems for sure specially the government, but a country full of Young and capable people who can make bucks through their skills will not go broke so easily.

যারা ইংলিশ বুঝেননি তাদের জন্য সহজে বলছি, এই ভিডিওতে বলা হয়েছে যে কেন বাংলাদেশ কোন রকম অর্থনৈতিক দুরবস্থার মধ্যে দিয়ে যাবে না ‌। বাংলাদেশের অর্থনীতি এখনো অনেক সমৃদ্ধ। বাংলাদেশের ঋণ জিডিপির তুলনায় ৩৮ শতাংশ যেখানে শ্রীলংকার ১১০ শতাংশ। ভিডিওতে শ্রীলংকার সাথে তুলনা করে এটাই বোঝানো হয়েছে যে বাংলাদেশের অর্থনীতি এখনো অনেক সমৃদ্ধ এবং আমরা হয়তোবা কখনোই কোন অর্থনীতি দুরব্যবস্থার মধ্য দিয়ে যেতে হবে না।

Those who know how banking works can pretty much tell why Bangladesh will not face the same trouble like Sri Lanka. That being said, the country is not risk free. A foreign loan comes with a lot of political pressure. A lot of factors are considered before taking a loan from a country. The only problem Bangladesh has is corruption. If they fix it, the country is good. Nothing else matters really.

Theres way too much inflation, and the rising economy means nothing for us. There is a food crisis coming up in 2023. The development and infrastructure means nothing when the education and healthcare sector is downright awful.

It will never be as bad as srilanka because unlike srilanka Bangladesh doesn't rely on tourism sector. The economy is driven by the RMG sector which exports tangible goods to huge markets like the EU and the US. Imo Bangladesh economy will be safe as long as we continue to export to the west. If the US sanctions our trade, Bangladesh is doomed.

Thank you for making this content and actually looking deep into the facts. I hope this video gets really popular.

I have been to bangladesh in 2019,the world didn't get the pandemic then, still I felt the cost of living in bangladesh is way more high than india. The difference between rupee and taka was then 14 rupees, not much. But the cost of travelling (specifically bus, 1 train journey), the food, clothes and the quality of food and services was not good if you consider the price you are paying. The traffic system is horrific,and people had to spent much. In India we can travel upto 200 km in 45 rs in train, food and other services are cheap here in India. The per capita income of Bangladesh may be more than india right now, but they have to spend a lot more than us.people may not agree with me but if any bangladeshi travel to India he/she can feel this difference. Specifically their communication system between cities need to change.

It just indian media makes all these nonsense claims as they always keep comparing between other countries. Many sectors of bangladesh economy is rising day by day, things like ship building, IT sector, pharmaceutical, automobile. Bangladesh is growing very fast. If u visit bangladesh u will see many industries, infrastructures and roads are being built all over bangladesh.

Idk man, I just experienced load shedding 6 times in the past 12 hours - one hour each time. It started from 10 pm and continued till 10 am. Besides the nightly torture, load shedding also happens every day at least 3 times between 12pm and 6pm. You can already assume how healthy that is for the economy. Our government who're always too high on their accomplishments have suddenly started warning the population to prepare for the worst in 2023. About 10 small industries just near my house have shut down for being unable to maintain production costs. We may not suffer like Sri Lanka but we're definitely suffering a lot.

Bangladesh cannot fail in the debt trap diplomacy, because Bangladesh's great decision making, [low depth choose] but Sri Lanka fails because they have no smart decision maker ever. On the country Sri Lanka builds megacities, luxurious items with their lone but what we make? nuclear power plant to support our industry, roads, infrastructure, Mega bridges that connects all lands and more and more, everything about in the name of Bangladesh has started because the load shedding but yes it has gone now.

Being neighboured and surrounded by two most communal and complicated poor countries like Myanmar and India, Bangladesh is doing really good from relative perspective. Guess if BD had neighbours like Singapore, Thailand, Malaysia, Brunei- economy and development of Bangladesh would go much faster. Bangladesh's main challenge is not economical development but political instability and social justice system. Bangladeshi people are hard working and intelligent, if political stability, righteous administrative systems are ensured BD will develop automatically by its own merit.

Pakistan's national debt-to-GDP ratio is lot higher than you reported. It's over 80% right now.

Short Answer : Corruption. I'm a Bangladeshi.

Malaysia loves this country

Oh boy, this will make the Indians beyond mad on Twitter. 💀

Time management issue is the only one reason for Bangladesh to collapse. You can't reach on time, can't make deliveries on time, every project fail to open on time. Everyday Bangladesh looses money for delay in every sector. Govt must overcome with every mismanagement and corruptions. Bangladesh must make the way easy for everyone.

Thanks sir thank you so much for the informative and interesting video. ❤️🇧🇩❤️

*Bangladesh needs to diversify, there are many industries that can benefit from various investments and hopefully the government is thinking in the same direction for future benefits*

Thanks for the deep analysis

The economy of Bangladesh will grow a lot if the government can ease the way of bringing remittance to the country and introducing paypal

Well, these statistics don't provide food for the middle-class family. The commodity price is doubled which is absolutely crazy. Many of people can't even afford to buy necessary things. Not to mention the energy crisis. Every day we face nationwide load shading in some region 19 hours /24h at most.

Thank you for the thorough analysis...Indians were getting excited at the prospect of BD going to the IMF with a "Begging bowl".... BD debt is sustainable, it's just the high cost of the $ right now which adversely impacting all nations... Including India...

Ya Bangladesh is doing good but the diversification of export earning is time demanding. Otherwise it would be difficult to keep It's position.

you guys have completely ignored the fact that we have a highly decreasing foreign reserve. last month it was 35.9B and its dropping fast. Imports have drastically reduced which is creating Shortage of foods and other necessary products. Imports of gas have been reduced creating 7-8h avg load-shedding. This lack of electricity is reducing the productivity of the industries. Recent stats showing 110million people all over the country is finding it hard to manage foods for 2times a day. Bangladesh is going through a really tough time and people here are suffering a lot more than the stat are showing.

Price hike is real tho. 😩

Great stream, as always. I appreciate the level-headed approach you take to the news and the markets. . A lot has changed and that's on everything but the truth is I don't even care much about bullish or bearish market anymore because Bradley James Holly got me cover as I am comfortably making $150,000 monthly.

The Russia - Ukraine war is putting a bad effect on Bangladesh's economy. We are having to lower fuel budget already for future safety. No matter what, our leaders are staying strong on their grounds to keep the economy steady.

Debt to GDP is higher but the people are still living like shit.. Bangladesh is doing good in terms of economy but they need to strengthen their social justice system and correct their political corruption. Though I have seen less homeless on the streets compared to previous years I went. I still see slums, lack of sanitation, poor living and so many more social issues. Another big issue for Bangladesh is the population, it’s increasingly growing for a tiny country. It’s one of the most populated countries and to a degree this is harming Bangladesh. There’s a lot of issues but I’m happy to see they’re not drowning

Very short & narrow analysis. Bangladesh Economy's current problem is the Dollar Reserve problem.... Also there is too much corruption, money laundering...... If this continues, people of this country will suffer.

A lot of confusion in the comment section perfectly resemble the state of general population of bangladesh. resident bangladeshi living in semi decent area in dhaka. power goes out 3-4 times daily, couple of months ago it was 2 times daily. we 'import' electricity from india, have our govt owned power plants, have upcoming power plants under construction including a nuclear one. have ppa agreements with almost a dozen private sector power generation companies. condition was pretty decent in recent years amounting to very little to no power cuts. but in the last couple of years we are passing through a transition phase where govt is slowly moving away from high cost power acquisition by not renewing most ppa s. War in Ukraine has been more damaging to us than covid, most of our imported oil and fertilizer are from those regions/ rus - belarus. lack of oil has lead to lower yield in power plants which in turn lead to rationing of power / more power cuts. we don't have enough oil refineries to transform crudes (only one govt owned refinery and that too caught fire recently) so the high priced processed oil is putting a dent in our dollar reserves. Dollar reserve - we have been bragging about it for a quite a few years now. But the story behind the picture has always been different. We are basically paying the price for fixing the price of taka instead of establishing a free float exchange rate. A couple months back USD was 87tk on bank exchange while it hit 120tk on open market exchanges. No wonder so many people/companies chose to bypass legal ways of converting foreign remittance .Our world famous garments industry don't bring almost 60% of their income home because of this issue, instead they use the credit to order necessary imports from abroad. Now we are going through a forced devaluation/revaluation. USD is jumping around 105tk and the cost of most items, specially imported has increased up to 20-50%. Destabilized world economic condition, lack of oil, lack of fertilizer, possible famine, recession, losing purchase power of taka, increased prices, loss making companies, downsizing of workforce. less export - more import, diminishing dollar reserve, stock market manipulation, turning away of foreign investors, l҉a҉c҉k҉ o҉f҉ d҉e҉m҉o҉c҉r҉a҉c҉y҉, m҉a҉s҉s҉i҉v҉e҉ c҉o҉r҉r҉u҉p҉t҉i҉o҉n҉, n҉o҉ j҉u҉s҉t҉i҉c҉e҉, c҉e҉n҉s҉o҉r҉s҉h҉i҉p҉ o҉f҉ s҉p҉e҉e҉c҉h҉ are 'some' of our troubles. So yeah we are not worried about chinese debt trap when china has its own economic horror show to worry about regarding collapsed housing market and zero covid lockdowns of major industrial districts. You know what troubles the most? more than 40% people living in developed countries don't think climate change is an issue. Here I am, writing this shit that nobody is going to read, waiting for a cat2 cyclone to make direct landfall.

Bangladesh is unstoppable

we are suffering soo much 😢you can't even imagine , before this crisi we used to pay 800-1000 max electricity bills ,now we pay 5000😢😢 now imagine

I’m back in dhaka after almost 4 years and it’s really shocking to see the exponential growth of the city. I also had the opportunity to see the new developments which made me really hopeful and excited for the future. Everything is changing so rapidly and we still have massive space to utilise debt which is a great safety net in my opinion. Although I think we prefer not using interest bearing debt due to our religious practices.

As a Bangladeshi I detest hearing about how our country has grown, or how high our GDP is or how it is "soon" going to be a developing country bla bla bla....Oh come on! do you know how expensive life has become recently in Bangladesh? like, the f*@k I care about the GDP man? I just want to be able to pay an affordable bus fare when I go ut or go to a shop and be able to buy average people food like vegetables, eggs, rice etc. Even grocery is damn expensive these days. City life is exhorbitant and believe me, we Bangladeshis work hard. 30% of our women are actively in the workforce, yet with a higher than average salary it is barely possible to maintain a simple middle class life in Dhaka city. Rent is rising, food is ridiculously expensive, law and order in the country is the worst in the history, the so-called development is happening at the cost of our future, our politicians are the most corrupt in the whole world and they are draining money out of the country and fleeing abroad. How do I know? Iit's all over the news how shady businessmen and politicians are laundering money and buying citizenships in Canada, USA, Turkey, Malaysia, Singapore etc. The people of our country are generating wealth and but unfortunately our corrupt unelected government and its thugs are laundering that money out of the country. Soon we will have nice railroads and pavements and a population of 200 million starving people with huge debt on their shoulders. Check out how much Bangladesh spends on the construction of each kilometer of road; a hint: it's the largest amount spent per km in the whole world. We seem to be topping many lists these days, few of them good.

The problem of Bangladesh is, the projects are required but paid three times more to build them. It's big time corruption !

Bangladesh has a huge expatriate population working abroad and there by sending foreign remittance regularly which will cushion any shortage in foreign reserves

Chinese debt is not the problem for Bangladesh. Corrupt, fascist, undemocratic, illegitimate, vote rigger, mafia, mass murderer despicable Hasina government is the ultimate problem. Sooner you understand, better that is!

Very informative video

.Source: Google, Bangladesh gdp $397 billion (nominal; 2022 est.) GDP per capita rank: 161st (nominal, 2022); 165th (PPP, 2022) Exports: : $52.08 billion (2021-2022); Imports: : $78.21 billion (2020-2021); Foreign reserves: $44.08 billion (April 2022) (44th

Well Japan saw the Sri Lanka crisis n realized they’re facing a tourism block off crisis as well. And voila. They modified their tourism visa program to compensate. Sri Lanka can adapt to this

The problem is export is not diversified. And a large number of project money is lost to corruption.

A great video. THank you so much. WHile studying the Bangladeshi economy, I knew that our debt to GDP ratio is surprisingly low, ever since our independence. But suddenly there were alarming claims of how we'll fall like Sri Lanka, creating false panic by the public. I'm assuming this was actually propaganda by the opposing parties and their sponsors worldwide. It's sick really.

All the fault is our government's,the prime minister even told us to keep candles and lanterns ready😂, thou the price of oil and food increased, our family didn't really had to go through a lot..we changed our car to lpg to save money and as for food it's just as b4,but yeah the lower income families are suffering much more still it's not to an extent of inflation in Sri Lanka... for me the worst part of this is load shedding-_-

Bangladesh is butiful country 🇧🇩

i understand and im really glad to realize that my country is doing really well in terms of economic growth but it still doesn't make any difference for lower and middle class citizens like us. Lots of my relatives are unemployed. And even if they find a job, they gotta give away a hefty amount of money as a bribe. And then, the inflation rate is going higher by higher. Electricity problem is still going on, not mentioning the level of corruption in every sector. Even the education standard is so poor, yes i acknowledge that the govt made education free in most regions but it just backfired because of the substandard of education. We wouldn't have required to import so much agricultural products from outside if our govt didnt turn a blind eye to our own farmers. Back then, my father's family used to earn their living by farming. But farmers these days are not paid the right amount so they had to leave this occupation despite owning a fair amount of land.

In Bangladesh we have about 3-6 hours of black out. We are in the end games now

We need to diversify our economy

Indian media disliked and rejected this video!

Bangladesh should attract foreign investment in its potential projects to increase GDP which will earn foreign currencies.

Sri Lanka mainly relies on tourism and covid has really messed up their economy

Our politician's are too. Much corrupt...may be in future days anything could happen

Incorrect. It is about goverance, not the source of income.

hahaha our president has already declared a economic crisis closer to srilanka starting january tho lol also we are already in a crisis regarding prices for daily necessities

Debt to gdp doesn't mean anything these days. This number for US is much higher, and it will keep going higher. The main issue for BD is a single source of truth for income - garments. Without diversifying not seeing a great income future for the country.

why is the value of Bangladesh's currency going doing?

Bangladesh debt problem is very bad.India and Pakistan debt problem is worse. Sri Lanka is suffering for debt. Bangladesh government is corrupt. Bangladesh, India, Pakistan,Sri Lanka and Nepal should stop borrowing from forign country.

The UK’s debt-to-GDP ratio is nearing the Sri-Lankan percentage …the UK lost its AAA rating about 10 years ago, and only has enough FX to sustain a month and a half of trade. Could you do a video on it? And one on China too?

God bless you Bangladesh 🙏🇧🇩💖 Jay Bangla✊

Seems to me that you need to learn about the corruptions of the government of Bangladesh and about their money laundering. As a Bangladeshi resident i can guarantee you that this country is going straight to it's downfall unless allah shows a miracle.

We should stop assessing Bangladesh's growth on the basis of GDP because the wealth and income inequality is INSANE. In a 2021 study it was found that the top 1% held 17% of the National income and the bottom HALF of the population had 17% as well. Of course the GDP is rising because the rich keep getting insanely richer while the middle class and below can't keep up with inflation

Correction Bangladesh's external Debt is 90 billion It will be 110 billion by next 3 years But next 3 years Bangladesh's GDP will cross 600 billion mark

bad days are coming.. SAVE AS MUCH AS YOU CAN

but what about the US debt? Are they ever going to pay them?

Too much Corruption and misuse of Power is to blame for Bangladesh high poverty rate. Its sadden me as we face this daily

I don't think Bangladesh gonna grow much as used to be in garments from now on india planting many as possible garment factories in there I guess because country people support more indigenous products.

I like everything but one thing is true that the latest population census is a lie and many many people reported to have not been approached by the workers responsible for the census. I am among them too lol. Our guess is that the population is in the ball park of 200mil not the old 16mil.

The islamists in the country have started showing their fangs. The country needs the current "authoritative democratic" government. Keep Sheikh Haseena in power bangladeshis, otherwise the country will be another afganisthan.

We only have... .. corruption , corruption,corruption,corruption

E

Ah this explains the electricity going out like 1 million times a day

well bangladesh will have its election in 2023 probably, maybe that's why...

Bangladesh is good. dont worry about us

even if not for load default bangladesh will go down in future due to core corruption in administrative institutions and bad education in grassroot levels....people are growing intolerant day by day and the youth is rotting down due to lack of proper guidance (drugs, crime etc). the stakes are very high

Bangladesh's main problem is money laundering, political instability & social injustice

Bangladesh has gap in the national budget and trade

The Godi media always make propaganda. It’s their daily work.Thanks for the neutral analysis.

The people who say "We import garments from them, and other stuff...", Yes you do, but don't brag too much. We have a good source of remitance money coming from the Middle East including Saudi Arabia. We are not 100% depend on you. No need to act like boss. You always pay frugal money. Secondly, a lot of your companies make their garments in Bangladesh and put country of origin as China or Italy. What about that ?

what of the famine tha bd ministers keep warning us of then?

your pronunciation of Bangladesh is wrong

How about considering that Bangladesh's development isn't obstructing by this debt issue, rather due to neighbors' policy to make a semi slave country!?

Bangladesh is a country that's flourishing just to spite Pakistan. lol

End corruption, everything ll fall into place

well, if these data came from Bangladeshi govt., then this video is based not on truth and things have changed drastically

Now do one about India. Why no one talking about India's economy? We are not going to be in a position like Srilanka or Pakistan but we are sure feeling the pressure......

Indonesia is a safe and rich country because its foreign debt is small, 30% of its economic GDP, Malaysia and the Philippines 70% of GDP 

there are three types of liers,,, 1. lier .... 2. Damn lier.... 3. Statisian ... as a Bangladeshi, I know In which category we fall.

Bangladeshis are happy we have no problem . what's about your country RU-vidr ?

Bengladesh has only forex problem not any debt problem☺

Make a video about when will Bangladesh recover it's current economic crisis.

Inflation rate is now 9.5 😞its at peak ever