The Asian Development Bank (ADB) has pledged to increase its budgetary support to Bangladesh from $400 million to $600 million to address challenges related to the country’s upcoming graduation from Least Developed Country (LDC) status. This expanded funding aims to mitigate potential economic shocks in various sectors and improve the business climate, particularly in the global logistics index, where Bangladesh ranks 88th among 139 countries. The Finance Division and the Economic Relations Division are working to confirm this support by December 2024, alongside a separate $400 million package approved earlier this year for enhancing domestic resource mobilization and supporting small businesses.

Expatriates sent nearly $1.53 billion in remittances to Bangladesh in the first 19 days of October FY 2024-25, averaging $80.70 million daily. This amount is slightly above the $1.47 billion remitted during the same period in September, with expectations that the inflow may maintain momentum throughout the month. By October 19, remittances included over $400.82 million through state-owned banks, $78.16 million through a specialized bank, $1.04 billion via private commercial banks, and $4.01 million through foreign banks. In contrast, 11 banks did not receive any remittances during this period. In the previous fiscal year (2023-24), total remittances reached $23.92 billion, the second highest in history, just below the record of $24.77 billion set in FY 2020-21.

Fitch Ratings has lowered Bangladesh’s economic growth forecast to 4.5% for FY25 due to near-term policy uncertainty following a political transition in August. The agency previously projected 5.3% growth but now expects a recovery to 5.7% in FY26. The World Bank also revised its forecast to 4% amid ongoing uncertainty. Political changes, including a new finance minister and central bank governor, have led to economic instability, but Fitch sees potential medium-term benefits if reforms are enacted. The country faces external financing challenges despite stable foreign reserves at $19.8 billion in early October.