Bangladesh is currently facing difficulties in meeting the conditions of a $4.7 billion loan from the International Monetary Fund (IMF) [4b03ceb2]. The country has failed to meet targets on foreign currency reserves and tax collection, leading to a decline in credit ratings and concerns about economic health [4b03ceb2]. Various indicators reflect the challenges Bangladesh is currently experiencing, including high food inflation, falling exports and remittances, and low private sector credit growth and imports [6ff2e241]. The World Bank and the IMF have revised down their growth forecasts for Bangladesh, citing concerns over rising oil prices, inflationary pressure, and supply side constraints [6ff2e241]. Despite consecutive good harvests and some positive measures taken by the government, such as infrastructure development, structural reforms are necessary to address fiscal vulnerabilities and ensure long-term economic stability [6ff2e241]. The economy in Bangladesh is also plagued by corruption and wrong government policies, leading to looting from banking and other sectors, growing inequality, rising inflation, and shortage of dollars [c4e5e9b1]. Compliance with IMF conditions is crucial for economic recovery in Bangladesh [0f36ff34]. Persistent inflation, a snowballing debt burden, and slow economic growth are the three challenges facing Bangladesh, according to Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD) [1b6862fa]. Bhattacharya highlighted that the unabated higher inflation is causing difficulties for low-income and marginalized people in affording food and healthcare. He also pointed out that Bangladesh's reliance on borrowing for debt servicing is increasing, leading to a higher debt risk. The country's debt-to-GDP ratio is currently 42 percent, taking into account private sector debt. Additionally, Bhattacharya mentioned that the government's loan from domestic sources is almost double compared to foreign debt, indicating significant problems. He noted that while Bangladesh has never defaulted on debt payment, around $5 billion in debt remains unpaid in the energy sector. Furthermore, slow economic growth is reducing the government's fiscal space for spending [1b6862fa].
Maldives is facing economic challenges after the presidential poll, with slow economic growth, high debt, and fiscal challenges. The World Bank predicts that economic growth will slow down in the next two years, and the country will face fiscal challenges due to inflationary pressures and ongoing central bank financing of the budget deficit. The government raised Goods and Services Tax (GST) rates earlier this year, but more substantial and immediate commitments are necessary. The World Bank recommends managing spending while boosting revenue, revamping programs, and broadening the tax base. The International Monetary Fund (IMF) also points out fiscal vulnerabilities and high external debt distress risk. The government may need external funding for new development projects and may seek support from friendly nations. India has a proven track record as a development partner and may play a crucial role in providing funding. The new leadership in Maldives will need to address these economic challenges and cooperate with neighboring countries to find solutions [f7fafd0d].
Djibouti is facing socio-economic distress due to factors such as low investment, high cost of goods and services, slow internet, and poor governance. The country serves as a hub for arms trafficking, gold smuggling, and illicit drug trade. Djibouti also faces issues of corruption, human trafficking, and exploitation of wildlife. The government's nationalization of key economic assets, including the port and free trade zone, has led to legal disputes with DP World. Despite its strategic importance, international organizations and powerful nations have largely ignored Djibouti's suffering [edfbf6c8].