Public sector credit growth narrowed to 15.91%

Business Eye Report

Bangladesh has witnessed a significant deceleration in public sector credit growth, marking a notable shift in economic dynamics as compared to the previous year.
Public sector credit expanded by 15.91% in April 2024, down sharply from the robust growth rate of 37.53% recorded in April 2023. The slowdown in public sector credit growth reflects adjustments in fiscal strategies aimed at managing economic stability and addressing macroeconomic challenges. Expert Analysis said that the moderation in public sector credit growth signifies prudent fiscal management amid evolving economic conditions. This adjustment allows for sustainable debt management and supports broader economic resilience."
Policies focusing on fiscal discipline and efficient resource allocation are crucial in maintaining stable credit growth and supporting sustainable economic development.
As Bangladesh continues to navigate economic complexities, policymakers are expected to prioritize fiscal reforms that foster inclusive growth, strengthen financial stability, and promote resilient economic recovery.