Inflation has been identified as the greatest risk for Bangladesh in 2025, according to the World Economic Forum’s (WEF) Global Risks Report 2025.

The report highlights extreme weather events and pollution as major challenges for South Asia’s economy, with Bangladesh being one of 10 countries where pollution ranks among the top three risks.

The report states that pollution has become a critical issue, particularly in densely populated nations like Bangladesh and India, requiring a “pollution-conscious green transition. ”

Bangladesh continues to grapple with persistent inflation, which rose to 10.34% in 2024 from 9.48% the previous year, according to the Bangladesh Bureau of Statistics. This economic strain, compounded by currency devaluation, declining foreign reserves, and reduced investment, has been further exacerbated by unemployment and an economic slowdown.

The WEF report, developed with insights from over 900 global experts and contributions from Bangladesh’s Centre for Policy Dialogue, paints a grim picture of an increasingly fractured global landscape.

Addressing these issues, the report argues, is crucial for ensuring stability and progress in 2025 and beyond.