Bangladesh’s import settlements fell sharply in August, signaling a slowdown in new business and investment despite an adequate supply of U.S. dollars. Bangladesh Bank data show Letters of Credit (LC) settlements dropped 10.9% year-on-year to $4.88 billion, largely due to an 11.5% fall in capital machinery imports.
Economists said entrepreneurs remain reluctant to pursue new investments as lending rates stay high and private sector credit growth hovers at just 6–7%. While LC openings rose slightly, bankers noted earlier declines are now weighing on settlements.
Analysts warn the weak appetite for capital goods could worsen unemployment and social unrest, stressing that political stability is crucial for restoring investor confidence and reviving economic momentum.