Bangladesh Economy Stable, Political Stability Crucial for Further Growth, Says Central Bank Governor Ahsan H Mansur

Governor Affirms Economic Stability

Bangladesh Bank Governor Ahsan H Mansur declared on Saturday, November 8, 2025, that the country's overall economic situation remains stable. He further stated that the economy is poised for even greater performance should political stability prevail. The Governor made these remarks while addressing a regional seminar on MFI-Bank Linkage, organized by the Microcredit Regulatory Authority (MRA), held at a resort in Basail, Tangail.

During his address, Governor Mansur highlighted the critical link between a stable political environment and economic advancement, suggesting that a calm political landscape is essential for the economy to thrive.

Broader Economic Projections and Challenges

While the central bank maintains a stable outlook, international financial institutions have provided varied projections and noted existing challenges. The Asian Development Bank (ADB), in its September 2025 outlook, projected Bangladesh's economy to grow by 4.0% in fiscal year 2025, increasing to 5.0% in fiscal year 2026. However, this subdued growth reflects muted domestic demand amid political transitions, recurrent flooding, industrial labor disputes, and persistently high inflation.

The International Monetary Fund (IMF) forecast Bangladesh's Gross Domestic Product (GDP) growth at 3.8% for 2025, accelerating to 4.9% in 2026. Conversely, the IMF recently lowered its GDP growth projection for fiscal year 2025-26 to 5.4% from an earlier 6.5%, attributing the revision to persistent political uncertainty, a tighter policy mix, rising trade barriers, and increasing stress in the banking sector.

The World Bank projected growth to decline to 4.1% in fiscal year 2024/25 before picking up to 5.4% in fiscal year 2025/26. The World Bank also noted that political turmoil in mid-2024 negatively impacted economic activity and investor confidence. Inflation is a continuing concern, with ADB forecasting it to rise to 10.0% in fiscal year 2025 from 9.7% in fiscal year 2024. The IMF estimates the average overall inflation rate for 2025 to be 10 percent.

Financial Sector Reforms and Anti-Money Laundering Efforts

Governor Mansur also provided updates on efforts to recover laundered money, stating that lawyers have been dispatched to England from various banks. These legal teams are working to establish claims for different groups of companies, with positive results anticipated in the near future.

In a significant move to strengthen the financial sector, the Bangladesh Bank recently initiated a resolution process involving five troubled Shariah-based banks. On November 6, 2025, the central bank temporarily took over these institutions by dissolving their boards, marking the beginning of a planned merger. Governor Mansur indicated that these banks were deemed non-viable, and the merger aims to restore good governance, ensure accountability, and regain public confidence in the banking system.

Conclusion

The central bank's assessment underscores a stable economic foundation in Bangladesh, with Governor Ahsan H Mansur emphasizing the pivotal role of political stability in achieving further growth. While international bodies acknowledge growth, they also point to challenges such as inflation, banking sector vulnerabilities, and the impact of political uncertainty. The ongoing efforts to recover laundered funds and implement significant banking sector reforms reflect the authorities' commitment to bolstering the country's economic resilience.