Over recent years, Bangladesh has been challenged with rising external debt, higher inflation and unfavourable unemployment. The nation has to implement smart policy changes to lessen its influence on economic prosperity. This study looks at the connection between public external debt, inflation and unemployment in Bangladesh using data from 1983 to 2023. The ARDL framework is used to estimate the variables. The study shows that inflation correlates significantly negatively with external debt, whereas total reserve and current account balance show significant positive relationships with external debt in the long run. However, in the short run, total reserve shows a negative relationship with external debt. External debt, personal remittance and gross capital formation show significant positive correlations with unemployment in the long run. In the short run, external debt and unemployment are positively correlated, while personal remittance and gross capital formation show negative correlations. In light of the results, the study suggests that the government should implement balanced budget targets to prevent excessive borrowing and effective debt management strategy for maintaining economic stability. The promotion of agriculture and targeted investments in infrastructure projects are suggested in this article. These programs will promote increased economic growth, the creation of new job opportunities, and eventually lead to sustainable development.
Bhattacharjee et al. (Wed,) studied this question.