Stabilisation signs emerge as long-term fundamentals hold

Standard Chartered Bangladesh on Wednesday hosted its flagship Global Research Briefing on the outlook for Bangladesh's economy.

The briefing featured key insights from the bank's Global Research team and presented a cautiously optimistic picture. Data shows that Bangladesh's macroeconomic conditions are showing early signs of improvement following a period of turbulence.

Inflation has likely peaked, foreign exchange reserves have stabilised, the taka has regained some footing, and exports are beginning to pick up. The bank's research estimates GDP growth at 5.0 per cent for FY26, says a press release.

Naser Ezaz Bijoy, CEO, Standard Chartered Bangladesh, said, "Although short-term indicators point to a potential turning point, our confidence is rooted in the strength of long-term fundamentals. We believe the current stabilisation presents an opportunity for sustained growth - but achieving this will depend on coordinated policy measures, ongoing external support, and structural reforms to revitalize growth drivers amid persistent global geopolitical uncertainties."

Saurav Anand, Saurav Anand, Economist, Standard Chartered, said, "The reforms undertaken in the previous year have significantly improved the macro-fundamentals and places Bangladesh on a strong footing in an extremely uncertain external environment. Growth indicators are showing signs of picking up, inflation is cooling off, USD-BDT has stabilised and FX reserves are improving."

The research also highlighted key structural challenges that require sustained attention. Private sector credit growth has moderated, and non-performing assets remain elevated.

While external debt repayments remain manageable, caution is needed, particularly as revenue growth show signs of slowing. Fiscal consolidation and policy reforms-particularly in the areas of revenue mobilisation and subsidy rationalisation-will be essential for unlocking long-term growth.

Lutfey Siddiqi, the chief advisor's envoy for international affairs, attended the event as the chief guest.

He said, "I thank Standard Chartered for convening this timely and insightful event. In today's volatile global environment, it is critical that we embed sound risk management practices to manage foreign exchange and interest rate uncertainties. The government remains fully committed to reform efforts aimed at improving the ease of doing business and attracting foreign direct investment. Moving forward, we must draw on collective expertise and align policy support to navigate global market complexities and drive sustainable, inclusive growth for Bangladesh."