Country risk in Bangladesh is moderate to high. It has an OECD country rating of 5, indicating that there may be a moderate to high chance it will be unable or unwilling to meet its external debt obligations in a systemic sense.
Bangladesh is ranked 177 out of a possible 190 in the ease of doing business scale, well below the regional average of 96. Bangladesh falls behind on all categories except for protecting minority investors.
The risk of expropriation in Bangladesh is high. Whilst the Foreign Investment Act of 1980 safeguards against government expropriation in Bangladesh without adequate compensation, a weak judicial system and widespread corruption make it difficult for foreign investors to seek impartial arbitration.
Political risk is moderate to high in Bangladesh. The struggle for power between the Bangladesh Nationalist Party and Awami League has often resulted in internecine warfare. This political rivalry has been rife with violence; in the last 5 years, over 1,028 people have been killed in over 3,540 instances of political violence. Frequency of political violence has decreased slightly from 2015/2016, however religious violence is increasing. Apart from voice/accountability, Bangladesh is below the regional average on all governance indicators, most notably political stability/absence of violence.