Macroeconomic indicators show early signs of stability: StanChart

Bangladesh's macroeconomic landscape is showing early signs of stability after months of volatility, as inflation appears to have peaked, foreign exchange reserves are steadying, the taka has firmed up, and export performance is improving, according to Standard Chartered Bangladesh.

The bank made the observations at its flagship Global Research Briefing held in Dhaka today, where private sector leaders, policymakers, and clients convened to assess the country's economic trajectory.

The bank's research estimates GDP growth at 5 percent for fiscal year 2025-26.

While acknowledging ongoing global uncertainties, it painted a cautiously optimistic picture, attributing the outlook to policy reforms, improving fundamentals, and opportunities for sustainable growth.

"Although short-term indicators point to a potential turning point, our confidence is rooted in the strength of long-term fundamentals," said Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh. 

"Stabilisation presents an opportunity, but it will require coordinated policy action, external support, and structural reforms."

Economist Saurav Anand echoed this, saying recent reforms have "significantly improved macro-fundamentals", citing cooling inflation, a stable exchange rate, and improving reserves.

The research also flagged structural challenges, including slowing private sector credit growth, elevated non-performing assets, and sluggish revenue mobilisation. 

It stressed the importance of fiscal consolidation and subsidy reforms to unlock long-term potential.

"Sound risk management is crucial amid global volatility," said Lutfey Siddiqi, chief adviser's envoy for international affairs, reaffirming the government's commitment to reforms that enhance investment and business conditions.

Participants of today's event also discussed forex market trends, fiscal sustainability, trade competitiveness, and investor sentiment ahead of the country's political transition.

With over 120 years of presence, Standard Chartered remains a key player in Bangladesh's development, financing major infrastructure and SME growth while expanding digital and retail banking services.