StanChart points to stability in Bangladesh economy

Staff Reporter :

Bangladesh’s economy is showing initial signs of stabilisation after a period of significant volatility, according to Standard Chartered Bangladesh. The bank highlighted improvements in key areas such as inflation peaking, stabilising foreign exchange reserves, a strengthening taka, and a recovery in export performance.

These insights were shared during Standard Chartered’s flagship Global Research Briefing held in Dhaka, which brought together policymakers, private sector leaders, and clients to review the country’s economic outlook.

The bank’s research forecasts a 5 per cent GDP growth for the fiscal year 2025-26. While noting persistent global economic challenges, Standard Chartered offered a cautiously optimistic outlook, attributing the progress to recent policy reforms and stronger macroeconomic fundamentals.

“Early indicators suggest a potential turning point, but our confidence is anchored in the resilience of the country’s long-term fundamentals,” said Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh.

“This stabilisation presents an opportunity, but realising it will require structural reforms, coordinated policy efforts, and sustained external support.” Economist Saurav Anand echoed this perspective, pointing to significant improvements in core macroeconomic factors including easing inflation, a stable exchange rate, and steady foreign exchange reserves.

Despite these positive developments, the briefing also highlighted continuing structural challenges such as sluggish private sector credit growth, elevated non-performing loans (NPLs), and weak revenue mobilisation. The bank’s research emphasised the urgency of fiscal consolidation, better subsidy targeting, and enhanced revenue reforms to unlock the country’s growth potential.

“Effective risk management remains vital in an uncertain global environment,” said Lutfey Siddiqi, Chief Adviser’s Envoy for International Affairs. He reaffirmed the government’s commitment to reforms aimed at improving the investment climate and fostering sustainable business expansion.
Participants also discussed forex market trends, fiscal sustainability, trade competitiveness, and investor sentiment, particularly in the context of Bangladesh’s forthcoming political transition.

With a presence spanning over 120 years, Standard Chartered continues to be a key player in Bangladesh’s economic development – supporting major infrastructure projects, promoting SME growth, and expanding digital and retail banking services.