The business environment in Bangladesh slightly deteriorated in 2023 compared to 2022, primarily due to sluggish regulatory reforms, weak infrastructure, and challenges in accessing finance.

This assessment comes from the Bangladesh Business Climate Index (BBX) 2023-24, released today by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange, Bangladesh (PEB).

The BBX, which measures the business climate on a scale of 0 to 100, reported a decline from 61.95 in 2022 to 58.75 in 2023.

PEB Chairman M Masrur Reaz presented the findings at an event held at the MCCI Gulshan office in Dhaka and emphasized the need for substantial reforms.

The BBX survey, conducted among 520 small, medium, and large enterprises, pointed to several key issues affecting business operations in Bangladesh.

Regulatory reforms were noted as particularly sluggish, contributing to a challenging business climate. Weak infrastructure further compounded these difficulties, creating bottlenecks in logistics and operational efficiency.

Additionally, many businesses reported difficulties in accessing finance, a critical factor for growth and expansion.

Improving regulatory processes, upgrading infrastructure, and enhancing access to financial services are crucial steps that could help reverse the current trend and create a more favorable environment for business activities.

The MCCI and PEB’s report serves as a critical tool for policymakers, providing data-driven insights into the challenges faced by the business community.

The decline in the BBX underscores the importance of ongoing dialogue between the government and the business sector. Addressing the highlighted areas of concern will be vital as the country seeks to attract more investment and drive economic development.