Business Report :
Bangladesh’s economy is expected to see a short-term boost in confidence as election-related activities gather pace, according to the Economic Update and Outlook for October 2025, according to the Economic Update & Outlook published on Tuesday.
The report published by the General Economics Division (GED) of the Bangladesh Planning Commission presents a cautious optimism for the coming months.
Inflation, while still elevated, has shown signs of stability in recent months.
After falling to 8.48 percent in June from 9.05 percent in May, it hovered around that level, edging up slightly to 8.36 percent in September from 8.29 percent in August, however, the report also showed a continued tight monetary stance wreaks havoc on credit growth vis a vis investment.
The GED report states, Significant deposit growth in the last few months is driven by restoring public confidence through government and central bank reforms, reducing savings certificate interest rates to make bank deposits more attractive and increasing e-money and agent banking, reads the report.
Strong remittance inflows and efforts to channel government cash transfers through banks also contribute to the increase in deposits, the report adds.
According to the Economic Update Bangladesh’s foreign exchange reserves showed steady improvement in the first quarter of FY2025-26, signaling stronger external stability and renewed investor confidence.
Gross reserves increased from $25.5 billion in March 2025 to $31.4 billion in September 2025, while BPM6-compliant reserves rose from $20.4 billion to $26.6 billion.
The rise was supported by higher export earnings, stable remittance inflows, and moderated import payments.
The central bank’s policy measures have also helped maintain exchange rate stability.
The report said deposit growth showed a moderating but fluctuating trend in the early months of the current fiscal year (FY26), supported by reforms aimed at restoring public confidence.
Deposits grew 10.01 percent year-on-year at the end of August 2025, while broad money — a measure of money supply — expanded by 7.78 percent over the same period.
However, reports indicate a shift in public confidence, leading to a surge in deposits in well-regarded private banks, even as overall systemic growth faces pressure.
Lower interest rates on Sanchayapatra (national savings certificates), alongside the expansion of e-money and agent banking, have made bank deposits more attractive.
Rice prices in Bangladesh began to fall in September, dropping by about one percentage point from August levels, according to the Economic Update & Outlook (October 2025) published today by the General Economics Division (GED) of the Bangladesh Planning Commission.
While inflation eased across all rice varieties, coarse and fine rice still registered relatively high inflation of around 15per cent.
The report said, To ensure food supply stability, the government on 8 October approved the import of 50,000 tonnes of rice from India and 220,000 tonnes of wheat from the United States.
It also plans to import an additional 400,000 tonnes of rice by November to maintain sufficient reserves until the new paddy harvest arrives in December.
