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Standard Chartered projects 5% GDP growth in FY25-26 amid cautious optimism

Standard Chartered projects 5% GDP growth in FY25-26 amid cautious optimism
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Standard Chartered Bank has projected a 5.0% GDP growth for Bangladesh in the 2025–26 fiscal year, signalling cautious optimism about the country’s economic recovery while warning that sustained structural reforms remain critical for long-term stability.

The projection was released during the bank’s annual Global Research Briefing, held in Dhaka on Tuesday. The event brought together business leaders, policymakers, and key stakeholders to discuss Bangladesh’s economic trajectory amid global and domestic challenges.

In its briefing, the bank noted early signs of macroeconomic stabilisation, including a gradual cooling of inflation, improved foreign exchange reserve buffers, a stabilised taka, and modest export recovery. However, it stressed that these gains are fragile and must be supported by deeper policy action.

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“Although short-term indicators suggest that we may have turned a corner, our optimism is anchored in the strength of Bangladesh’s long-term fundamentals,” said Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh. “This stabilisation phase presents a narrow window to implement long-overdue reforms in coordination with development partners and the private sector.”

Saurav Anand, Economist at Standard Chartered, echoed this sentiment, noting that reforms undertaken over the past year—particularly those linked to IMF-supported fiscal discipline—have helped to restore some macroeconomic balance. He said further improvements are needed to unlock private sector credit, reduce non-performing loans, and accelerate revenue mobilisation.

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The bank flagged fiscal consolidation and subsidy reforms as urgent priorities to reduce fiscal stress and create room for productive spending.

Chief Adviser’s Envoy for International Affairs, Lutfey Siddiqi, attended the event as chief guest. He highlighted the interim government’s reform commitments, especially in areas of investment climate, governance, and macroeconomic stability. “In today’s volatile global environment, effective risk management and policy consistency are essential to weather external shocks and build investor confidence,” he said.

The discussion also touched on exchange rate management, trade competitiveness, and the political importance of maintaining stability as the country prepares for its next national election.

Standard Chartered, which has operated in Bangladesh for over 120 years, reaffirmed its commitment to supporting the country’s development through sustainable finance, investment facilitation, and partnerships across infrastructure, power, and SME sectors.

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