The report’s Global Risks Perception Survey (GRPS) also highlighted geoeconomic confrontation and persistent inflationary pressures as major threats that could disrupt trade, investment and household purchasing power.

Crime, corruption and illicit economic activity now top the list of risks imperilling Bangladesh’s economic progress, according to the latest findings of the World Economic Forum (WEF) and longstanding global competitiveness data. Experts warn that unless the country tackles these deep-rooted issues, its economic resilience and investment climate will weaken further.

In its Global Risks Report 2026, the Geneva-based WEF identified crime and the illicit economy as the most significant risks facing Bangladesh over the next two years. This is the first time in the report’s history that these two factors have topped the risk profile for the country in both economic and societal terms.

The report’s Global Risks Perception Survey (GRPS) – which drew insights from more than 1,300 experts from government, business, academia and civil society between August and September 2025 – also highlighted geoeconomic confrontation and persistent inflationary pressures as major threats that could disrupt trade, investment and household purchasing power.

Experts warn that slowing global growth and elevated price levels could combine in a scenario akin to stagflation, while debt vulnerabilities across public, corporate and household sectors could amplify financial instability. The WEF’s Executive Opinion Survey, which canvassed over 11,000 business leaders across 116 economies, fed into the Bangladesh risk profile.

Corruption Remains Deeply Entrenched

Bangladesh’s longstanding challenges with corruption further compound the risks flagged by the WEF. Historical data from the Global Competitiveness Index (GCI) 2017-18 – also compiled by the WEF – reveals that corruption regularly ranks as the top barrier to doing business in Bangladesh. In that survey, corruption was cited as the single most problematic factor for business operations, ahead of infrastructure gaps and bureaucratic inefficiencies.

The GCI profile shows Bangladesh placed 99th out of 137 economies, with especially poor scores in irregular payments and bribes (ranked 126th) – a direct marker of corruption-related friction in the economy.

Corruption’s effects are widespread. From everyday bureaucratic interactions to large-scale public contracts, bribery and irregular payments inflate business costs, deter investment, and undermine trust in public institutions. Entrepreneurs have frequently reported that securing permits and winning contracts often involves unofficial payments, while ethical standards among officials are perceived as weak.

Transparency International’s Corruption Perceptions Index further underscores the depth of the problem: as of its most recent report, Bangladesh scored among the lowest globally, with a score well below the regional and global averages, indicating a pervasive perception of corruption across public institutions.

Several high-profile scandals over the past decade – such as controversy surrounding major infrastructure projects – have kept corruption in the public spotlight, stoking public scepticism about transparency in governance and project management.

Crime and the Illicit Economy: A Growing Drag on Growth

While corruption tops business concerns, crime and illicit economic activity are now emerging as central risks to Bangladesh’s growth and stability. The WEF’s latest Global Risks Report identifies these issues – ranging from underground markets to organized criminal networks – as primary threats, potentially eroding investor confidence and social cohesion.

Illicit activities, including money laundering, smuggling and underground trading, drain state resources and distort formal economic activity. They go hand-in-hand with corruption in creating environments where transparency and accountability are weakened, business costs rise and formal sector competitiveness suffers.

Economists point out that the cost of crime isn’t confined to direct financial loss. When businesses perceive high risks of theft or extortion, they often invest less in formal security or compliance, deter expansion and may resort to informal arrangements that further weaken institutional oversight.

Institutional Weaknesses and Governance Challenges

The GCI data from 2017-18 also highlighted institutional weaknesses as key constraints to competitiveness. Poor judicial independence, favouritism in official decision-making and burdensome regulation all undermine the rule of law and fair competition, creating space for both corruption and criminal activity to flourish.

The legal and regulatory framework was seen as inefficient in settling disputes and challenging arbitrary regulations – a critical concern for investors who rely on predictable and transparent systems.

Experts argue that strengthening transparency, improving judicial effectiveness and cracking down on both petty and grand corruption would not just improve Bangladesh’s international rankings but also its economic fundamentals. Enhanced enforcement of anti-money-laundering laws, digitization of government services and robust protection for whistleblowers are among the policy tools being discussed, though progress has been uneven.

The Stakes for Bangladesh’s Future

Bangladesh’s economy has been lauded for robust growth over the past decade, underpinned by expanding exports, remittances and domestic consumption. However, the persistent risks of corruption, crime and economic informality erode the nation’s long-term potential.

Analysts warn that as global competition intensifies, Bangladesh’s attractiveness as an investment destination may falter if it fails to improve institutional integrity and reduce the informal economy’s footprint. This includes strengthening legal frameworks, enhancing transparency in public procurement and enforcing anti-corruption measures consistently at all levels of government and commerce.

As the WEF forecasts a turbulent global economic outlook – with heightened trade uncertainties and geopolitical strains – Bangladesh’s internal vulnerabilities could amplify external shocks, making structural reforms ever more critical.