Standard Chartered Bank sees recovery signs, calls for policy reforms

Standard Chartered Bangladesh hosted its flagship Global Research Briefing this week, bringing together government stakeholders, private sector leaders, and the Bank's clients to discuss the country's economic outlook.

The Bank's Global Research team presented a cautiously optimistic view, projecting GDP growth at 5.0% for FY26. Key indicators such as inflation, exchange rate stability, and export performance show signs of improvement, suggesting that Bangladesh may have turned a corner following recent macroeconomic turbulence.

Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh, said, "Although short-term indicators point to a potential turning point, our confidence is rooted in long-term fundamentals. The current stabilisation phase presents a unique opportunity — but sustained growth will depend on coordinated policy efforts, structural reforms, and continued external support."

Saurav Anand, Economist at Standard Chartered, added, "The reforms undertaken over the past year have significantly improved the macro fundamentals. Growth indicators are rising, inflation is easing, the USD-BDT exchange rate has stabilised, and foreign exchange reserves are recovering."

Despite positive signals, the briefing highlighted key structural vulnerabilities. Private sector credit growth remains subdued, non-performing loans are elevated, and external debt repayments, while manageable, need close monitoring. Slowing revenue growth also raises the need for fiscal consolidation and subsidy rationalisation.

Chief Adviser's Envoy for International Affairs Lutfey Siddiqi attended the event as Chief Guest. "In today's volatile global environment, sound risk management practices are essential. The government remains committed to reforms that improve ease of doing business and attract foreign investment," he said. He also stressed the importance of aligning policy support to navigate global headwinds and ensure inclusive, sustainable growth.

Participants exchanged insights on foreign exchange markets, trade competitiveness, fiscal sustainability, and the global demand outlook. The country's commitment to democratic transition and electoral reform was also noted as a key driver of investor confidence.

With over 120 years of uninterrupted presence, Standard Chartered Bangladesh remains a leading multinational financial institution in the country, playing a significant role in trade financing, infrastructure development, and retail banking.