Zakir Hossain from Dhaka
Bangladesh’s economy is expected to experience a short-term boost in confidence as election-related spending picks up, according to the October 2025 Economic Update and Outlook by the General Economics Division (GED).
However, private sector credit growth remains alarmingly low at 6.35% in August 2025 — a historic low — despite easing inflation. “This persistent slowdown directly translates into reduced investment and job creation,” the report warned. Inflation showed stability at 8.36% in September, while deposits grew by 10.01% year-on-year, supported by remittance inflows and banking reforms.
Lower interest on savings certificates and wider use of e-money and agent banking have helped boost confidence, GED noted. However, the report cautioned that high inflation continues to limit household savings.