Interest rates for five national savings schemes have been revised for the January–June 2025 period, aligning them with prevailing market rates for the first time in the country. A notification issued by the Internal Resources Division (IRD) of the Ministry of Finance on January 15, 2025, said that the revised rates are effective from January 1, 2025. The schemes affected by this adjustment include the Five-Year Bangladesh Savings Certificate, Three-Monthly Profit-Based Savings Certificate, Pensioner Savings Certificate, Family Savings Certificate and Post Office Savings Bank Term Accounts under the National Savings Scheme. Interim govt vows justice, recovery of stolen money Besides, the interest rates for these savings schemes will now be revised biannually, reflecting changes in the rates of five-year and two-year treasury bonds. Importantly, investors will receive the profit rate prevailing at the time of purchase throughout the entire term of the investment, ensuring consistent returns. To ensure equity for less privileged groups, the investor categories under the National Savings Scheme have been simplified into two new stages: investments of Tk 7.50 lakh or below, and those exceeding Tk 7.50 lakh. As in the past, early encashment will yield profits based on an annual rate applicable at the time of withdrawal. This move is anticipated to benefit marginal investors and encourage greater participation in the National Savings Scheme, according to an IRD press release. New law in the works empowering Bangladesh Bank to transfer bank owners' shares even without their consent Through the scheme, women, retired employees, pensioners, senior citizens and the physically disabled can access enhanced financial and social security. The changes are expected to make the scheme more effective in supporting these groups.

JPMorgan’s net income soared 50% to more than $14 billion in the fourth quarter as the bank’s profit and revenue easily beat Wall Street forecasts. Earnings per share rose to $4.81 from $3.04 a year ago. The result beat Wall Street profit projections of $4.09 a share, according to the data firm FactSet. Total managed revenue hit $43.7 billion, up 10%, from $39.9 billion a year ago. Wall Street was expecting revenue of $41.9 billion. Britain’s Treasury chief kicks off China visit The New York bank set aside $2.6 billion to cover bad loans, up about 20% from the same period a year ago. JPMorgan shares jumped on the bank's final financial results of 2024, climbing 2.6% before the bell.

Germany, Europe’s largest economy, saw its economy shrink for the second year in a row in 2024, based on preliminary official data published Wednesday, just weeks ahead of an election where the economy is the central focus, reports AP. The Federal Statistical Office reported a 0.2% decline in gross domestic product last year, following a contraction in 2023. Ruth Brand, the office's head, stated that the economy is estimated to have shrunk by 0.1% in the fourth quarter compared to the preceding three months. However, this is a provisional estimate as complete economic data for December are still pending. Asian stocks mixed ahead of US inflation data Germany's economic struggles have been compounded by external disruptions and domestic challenges, including bureaucratic hurdles and a lack of skilled workers, with politicians divided over solutions. The government led by Chancellor Olaf Scholz collapsed in November after Scholz dismissed his finance minister over disagreements on revitalising the economy, prompting an early election set for Feb. 23. Asian shares mixed as Big Tech drops affect Wall Street Candidates vying to form the next government have presented differing strategies to reinvigorate the economy.

Finance Adviser Dr Salehuddin Ahmed on Sunday said trade is the most important vehicle for economic development, not aid or grants. “We have very excellent relationships with Saudi Arabia, Japan, South Korea and other countries that are coming in a big way for our economic development,” he said while speaking at a report launching ceremony at the Ministry of Foreign Affairs as the chief guest. Referring to Samsung investment issue, the Finance Adviser said Samsung came in the past to invest but were not welcomed and they went to Vietnam. He said Bangladesh is paying the price now as a lot of wrong policies were taken in the past. Govt trying to make things easy for investors: Foreign Adviser He said many countries are proposing free trade agreements (FTAs) with Bangladesh and the country needs to remain prepared. The Finance Adviser said the government will do everything, and the private sector will just take the opportunity. “Private sector has to be very competitive, efficient, and also perform their job.” “One thing very clearly I have said - subsidies, cheap money and low interest rate – those days are gone ... .these are not the signs of a competitive economy,” he said. The Ministry of Foreign Affairs unveiled the comprehensive report titled “Enhancing Saudi-Bangladesh Economic Engagement, Trends, Key Challenges & Long-term Growth Prospects,” prepared under its initiative with research support from Policy Exchange, a private policy think tank based in Dhaka. The report documented by Policy Exchange under the leadership of Dr M Masrur Reaz, offered in-depth insights and analyses into the potential economic engagements between Bangladesh and the Kingdom of Saudi Arabia. Foreign Secretary Md Jashim Uddin presided over the session. KSA revises fees for visa, Iqama renewals Speaking as special guest, Foreign Affairs Adviser Md Touhid Hossain reaffirmed the interim government’s dedication to streamlining processes to facilitate investment in Bangladesh, signaling a renewed commitment to removing barriers for foreign investors. The Finance Adviser echoed this sentiment by sharing ongoing reform initiatives in Bangladesh aimed at creating an investor-friendly environment. Foreign Secretary Jashim Uddin reflected on the shared historical linkages and values between Bangladesh and Saudi Arabia while calling for enhanced engagements among the businessmen and relevant stakeholders in areas of mutual economic cooperation. Saudi Ambassador to Saudi Arabia to Bangladesh Essa Yousef Essa Alduhailan highlighted Saudi Arabia’s unwavering support for Bangladesh while acknowledging challenges previously faced by Saudi investors. He reiterated Saudi Arabia’s commitment to fostering a stronger economic partnership. The ceremony witnessed participation from key officials representing BIDA, ERD, the Ministry of Commerce, and the Ministry of Finance, along with prominent business leaders, members of the media, and officials from the Ministry of Foreign Affairs. Saudi’s Aramco willing to build refinery in Bangladesh Dr Md Nazrul Islam, Secretary (East) of the Ministry of Foreign Affairs, provided the audience with the background and context of the report, emphasising its significance in strengthening Saudi-Bangladesh relations. This was followed by a presentation of the salient features of the report by Chairman and CEO of Policy Exchange Dr M Masrur Reaz.

Though the country faces economic challenges, the situation is not as critical as suggested by the International Monetary Fund (IMF), said Finance Adviser Dr Salehuddin Ahmed on Thursday. “The IMF has expressed various apprehensions, but the economy is not as bleak as projected. However, there are undeniable challenges we must address,” he told reporters at the Secretariat. His remarks came as a 10-member IMF delegation is in Dhaka to review Bangladesh’s economic progress under the ongoing loan programme. Govt trying to keep prices of essentials tolerable till Ramadan: Finance Adviser The review is part of the preparation for the fourth tranche of funds. During discussions with government officials, the IMF noted that the economy is under pressure due to a range of factors, including political unrest, floods and contractionary policies. The IMF has predicted that Bangladesh’s growth rate could drop to 3.8% by the end of the year. It further highlighted slow economic activity and persistent inflationary pressures. Capital outflows from banks have added strain to foreign exchange reserves, the delegation said. The IMF delegation head, Chris Papageorgiou, offered a brighter outlook for the next fiscal year. Politics won’t affect trade ties with India: Finance Adviser He projected GDP growth to increase to 6.7%, with inflation falling to 5-6%, and emphasised the need for structural reforms, including tax reforms, strengthening the banking sector with a clear roadmap, and ensuring the central bank's independence. About the Beximco Group ‘bailout’, Dr Ahmed justified the move, citing humanitarian grounds. “The funds were necessary to ensure workers received their wages. Wrongdoers must be punished, but workers should not suffer.” Looking ahead, Dr Ahmed assured that the 2025-26 budget would focus on protecting the poor from tax burdens. He criticised certain business practices, stating, “Entrepreneurs are constantly seeking loopholes. Those with Tk 500 million in business refuse to pay Tk 40 million in taxes. This must change.” Meanwhile, the IMF confirmed that Bangladesh would receive $645 million from the fourth tranche of its loan programme by the end of February, with an equal amount due in the fifth tranche. Before disbursing the fifth tranche, another review is scheduled for March or April.  

The interim government has taken a move to expedite the implementation of the annual development programme (ADP) aiming to induce money flow in the economy. To expedite the implementation, the interim government has decided to put emphasis on the projects which have been cleared by them since coming to office on August 8. The government in principle took the decision at a recently held ECNEC meeting chaired by the Chief Adviser Professor Muhammad Yunus. Govt floats tender for 12 grid-tied solar plants in private sector The decision came following the record lowest ADP implementation rate of just 8 percent in the first four months of the running 2024-25 fiscal. According to the Planning Commission sources, directives have been given to accelerate implementation of the projects from now on. Planning Adviser Dr Wahiduddin Mahmud while briefing reporters about the recently held ECNEC meeting had said that the approved ADP projects by this government would be implemented quickly aiming to accelerate the implementation rate.  “By this way, hopefully we will be able to increase the implementation rate by the end of the running fiscal,” he said. But he said that the implementation would be done in a proper way. Planning Commission sources said that the government put special emphasis on the good and innovative projects which are corruption free initially, while implementation of the projects have to be corruption free from any aspect. The interim government thinks that the previous Awami League government took a number of projects at inflated value that resulted in irregularities during its implementation level, including during the appointment of the contractor. Illegal sand extraction in Feni continues despite political shift To prevent corruption and irregularities in the development projects, from the very beginning the interim government tried to stop wastage of public money, and corruption and cut short the number of projects numbers for which the implementation rate suffered a lot, causing a heavy toll on the money circulation in the economy. “We will definitely scrutinise the projects, we have taken the decision in principle that the good projects that we are thinking about and which got new project directors will be advanced in a speedy manner,” the Planning Adviser said. The interim government that came into office on August 8 following the student-people uprising has decided to cut short many development projects terming those as the politically motivated ones. The four months of the running fiscal saw a record low of 8 percent implementation of the development budget, according to the Implementation Monitoring and Evaluation Division (IMED) of the Planning Ministry.  The same period last year saw an execution rate of 11.54%. As per the information from the Planning Commission the rate is 12-13 percent for those government entities which implement projects from their own funding. Specifically, for the period from July to October of the current fiscal year, the government managed to implement development projects worth Tk 21,978 crore, according to the IMED. PDB can save US$1.2 billion annually through power sector reforms: IEEFA The Professor Muhammad Yunus led interim government in its first Ecnec meeting had decided to reduce the development budget. The National Economic Council (NEC) of the Awami League government approved the Annual Development Programme (ADP) for the fiscal year of 2024-2025 with an outlay of Tk 265,000 crores. The transport and communication sector got the highest allocation of Tk 70, 687.75 crore (26. 67pc of  budget allocation) in the ADP. With 13,288.91 crore ADP for autonomous bodies or corporations, the total size of ADP for 2024-2025 stood at Tk 278,288.91 crore.

The Metropolitan Chamber of Commerce and Industry (MCCI) has said the economy has been gradually recovering despite the political instability after the July-August movement. In its quarterly economic review for July-September 2024 (Q1 of FY25) revealed on Thursday, the MCCI said the country saw improvements in exports, imports, remittances, and foreign exchange reserves despite many economic challenges during July-September. It has identified several pressing economic challenges including high inflation, declining external demand, a revenue shortfall, slow public expenditure, reduced job opportunities, and sluggish investment. The agriculture sector employed about 45% of the labor force and contributed 12.84% to GDP in Q4 of FY24, up from 9.41% in Q3 of FY24. Strong government support and favorable natural conditions, aside from localised flooding, enabled the sector to achieve a growth rate of 5.27% in Q4 of FY24, slightly higher than the 5.16% growth in Q3, said a press release. It said while data for Q1 of FY25 is pending, the industrial sector experienced slower growth of 3.98% in Q4 of FY24, down from 6.25% in Q3. The sector’s GDP share also fell to 35.38% in Q4 from 40.50% in Q3. The manufacturing sub-sector showed a similar trend, with growth declining to 6.45% in Q4 from 6.93% in Q3. The services sector grew by 3.67% in Q4 of FY24, slightly down from 3.81% in Q3. However, its GDP contribution increased to 51.78% in Q4, up from 50.09% in Q3, it added. Adani fraud allegations rock Indian Parliament as opposition demands probe into billionaire's firms Data from the Bangladesh Power Development Board (BPDB) indicates that power generation reached a maximum of 15,717 MW on September 20, 2024. On September 30, actual generation was 13,176 MW against a demand of 13,946 MW, resulting in 340 MW of load shedding. Broad money (M2) growth slowed to 7.88% in September 2024, below the central bank’s target of 8.20%. Private sector credit grew by 9.20% year-on-year, falling short of the 9.80% target. Public sector credit growth plummeted to 8.75%, compared to 26.27% in September 2023. Tax revenue collection decreased by 6.07% year-on-year in Q1 of FY25, with significant shortfalls in VAT and customs revenue. Public expenditure also slowed, with ministries and divisions spending only 4.75% of the annual development program (ADP) allocation during the quarter, compared to 7.50% in the same period last year, it said. Export earnings grew by 7.62% year-on-year to $11.66 billion in Q1 of FY25, while imports rose by 1.64% to $16.17 billion. Remittances surged by 33.34% to $6.54 billion, driven by higher inflows in September 2024. Massive irregularities in banking, energy sectors detected: Debapriya General inflation eased slightly to 9.92% in September 2024 from 10.49% in August. Food inflation dropped to 10.40%, while non-food inflation stood at 9.50%. Rural areas were disproportionately affected by high inflation compared to urban regions. The Bangladeshi Taka depreciated by 1.67% against the US dollar between June and September 2024. Gross foreign exchange reserves stood at $24.86 billion in September, down from $26.91 billion a year earlier. Foreign direct investment (FDI) inflows declined by 15.01% year-on-year to $300 million in Q1 of FY25. While signs of recovery are evident, significant challenges remain for Bangladesh’s economy, said MCCI. It stressed the need for addressing structural inefficiencies and improving governance will be crucial to sustaining growth in the coming quarters.  

South Korea’s central bank on Thursday lowered its key policy rate for the second straight month and said the country’s economy will grow at a slower pace than it initially anticipated. Following a meeting of its monetary policymakers, the Bank of Korea cut its benchmark interest rate by a quarter percentage point to 3%. The bank lowered its outlook for the country’s economic growth from 2.4% to 2.2% for 2024 and from 2.1% to 1.9% for 2025. It was the second straight month that the bank took steps to lower borrowing costs and expand money supply, despite the lingering effects of high inflation and alarming levels of household debt, as concerns grow about a faltering economy. The bank had also slashed its policy rate by a quarter percentage point to 3.25% in October, which presented its first rate cut since May 2020, when the economy was grappling with the COVID-19 pandemic. The bank said the country’s trade-dependent economy is facing growing uncertainties in global economic trends and inflation, which it said could be impacted by the policies of the new U.S. government led by Donald Trump and ongoing geopolitical conflicts. 'Everything is expensive!' Bolivia faces a shocking economic collapse Since winning reelection, Trump has vowed to slap huge new tariffs on foreign products entering the United States, including those from Mexico, Canada and China, which he insists will create more domestic jobs and shrink the federal deficit. The Bank of Korea said South Korea’s economy has been losing its growth momentum amid weak domestic consumption, slowing exports and decreasing employment. “Going forward, domestic consumption will see a mild recovery, but the recovery in exports is likely to be weaker than initially anticipated due to intensifying competition and strengthening of protectionist trade policies in key industries,” the bank said in a statement.  

As Bangladesh’s interim government prepares economic reforms, a new survey from the Economic Intelligence Bangladesh (EIB) reveals that curbing corruption, controlling inflation, and rebuilding foreign exchange reserves are the nation's most critical priorities. The survey, conducted by The Business Standard in collaboration with DataSense in September 2024, gathered insights from 12 leading economists and academics across Bangladesh. A striking 42% of respondents identified fighting corruption and money laundering as the most urgent challenge, emphasizing its impact on the country’s economic stability. Prominent voices in the survey emphasized the pressing need to address corruption, with Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), stressing the importance of legal action. "Corruption and money laundering can be checked by proactively making use of legal means to bring the perpetrators to justice," Rahman said. He also urged the government to partner with other nations to recover stolen assets and hire internationally recognized professionals in asset recovery. "Community groups can be organized to act as watchdogs against corruption," he added. With inflation straining household budgets, 25% of the economists identified controlling inflation as a priority. Former World Bank lead economist Zahid Hussain called for immediate intervention in the food supply chain. "The interim government must prioritise controlling essential food inflation, neutralise the syndicates on extortion in the supply chain and deter collusive practices by big players in markets such as rice, flour, lentil, onions, edible oil and such other essential items." Seventeen percent of respondents emphasized the importance of rebuilding Bangladesh’s foreign exchange reserves, which have been depleted amid global economic challenges. Dr. M A Razzaque, chairman of the Research and Policy Integration for Development (RAPID), stressed the need for a market-friendly exchange rate system alongside anti-corruption measures. "Money gathered through corrupt practices is often siphoned off abroad, putting additional pressure on our reserves," he warned. Razzaque also advocated for renegotiating loan terms to ease repayment pressures and securing concessional loans with longer grace periods to support export sector development. A diversified export structure, supported by tariff rationalization, will be critical to increasing export earnings, he said. Attracting foreign investment, especially in the export sector, should also be a priority, he added. Economists involved in the survey agree that immediate and decisive action is crucial to stabilize the economy and foster long-term growth. The consensus highlights the need for comprehensive reforms to address corruption, reduce inflation, and restore foreign reserves, setting the stage for sustainable development in Bangladesh.  

The main opposition Jatiya Party lawmaker Anisul Islam Mahmud on Tuesday (February 13, 2024) demanded the government of Bangladesh put an end to the loan default culture to save the country’s economy. “In this situation, we need to stop the culture of wilful loan default,” he said. Anisul Islam, a veteran parliamentarian and the deputy leader of the opposition, placed the demand in the House, taking the floor on a point of order. Citing a newspaper story, he said the banking sector's defaulted loans soared by over 20 percent to Tk 145,633 crore in 2023 as both governance and accountability continue to get looser. 98 percent of the country's demand for medicine is produced locally: Health Minister “Whenever this issue is being discussed, we are told that Bangladesh Bank and other banks are taking measures to reduce this (defaulted loans). But we never see that defaulted loans are declining, rather it is going higher,” he said. The Jatiya Party MP said the amount of defaulted loans was Tk 28,000 crore as of 2008. The number of defaulted loans has increased to Tk 1.45 lac crore since 2008 to as of today which is very alarming. He said there is a cash crisis and a dollar crisis in the banking sector. Some strong measures have been taken to tackle this situation. With Pahela Falgun-Valentine’s Day, the nation eyes a festive February 14 Anisul said Bangladesh Bank (BB) is telling that they want to reduce the amount of defaulted loans from existing nine percent to eight percent of total outstanding loans.   “But their (BB) track record says that they will not do so,” he continued. The opposition lawmaker requested the Finance Minister to give importance to stopping the loan default culture. “The issue of loan default culture has been discussed in parliament so many times. But nothing has happened,” he added. Govt okays project to provide freelancing training to youths in 48 districts