S&P’s Melbourne office has reported that the sudden resignation of Bangladesh’s Prime Minister has intensified the country’s economic difficulties, further straining foreign exchange reserves and external economic indicators. Already facing significant economic and political challenges, Bangladesh’s credit rating was downgraded by S&P from BB- to B+ earlier in July.
Despite these setbacks, S&P is cautiously optimistic that stabilizing the socio-political environment could mitigate some of the economic damage. The agency cautioned, however, that low export levels could continue to exert pressure on the country’s reserves. A consistent influx of remittances is deemed critical to avoiding further exacerbation of the economic situation.
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