Bangladesh ahead of general elections – the political and economic situation

Over the last 18 months, Bangladesh has experienced momentous shifts, the resignation of long-time leader Sheikh Hasina and a constitutional crisis, followed by the formation of an interim government under Nobel laureate Muhammad Yunus amidst ongoing political uncertainty, protests against banning the Awami League, and campaigning ahead of the the general election scheduled for 12 February.

Economically, GDP growth dropped to about 3.7–3.9 % in FY2025 before modest recovery signals toward 4.8–4.9 % in FY2026 as projected by multilateral lenders, while inflation remains elevated, foreign investment weak, and fiscal pressures and debt concerns intensify, prompting the interim government to approve a tight budget focused on social safety nets and job creation amid fragile private sector credit and reform challenges.

• What are the implications in the mid- and long-term for your business in the country?

• What are possible scenarios of the general election?

• And how is the security situation?

These and other aspects will be discussed by our two experts one week ahead of the elections in Bangladesh.

Join us on 5 February 2026, 12:30 (noon) - 13:30 (CET) for our expert talk with Dr. Ishrat Hossain, Research Associate at the German Institute for Global and Area Studies and Anja Kersten, Deputy Head of Mission of the Germany Embassy in Dhaka.

You will have the opportunity to ask questions.