5 key updates of Bangladesh’s economy last week

Bangladesh's economy last week revolved around an ambitious export growth target set by the government, the launch of a Chinese-funded industrial zone, a credit outlook downgrade from S&P Global, relief for merging banks' depositors, and an upcoming trade deal with South Korea.

The following is a recap of those major stories as covered by Star Business.

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Govt bets on 15% export growth despite challenges (July 27)

The government set a $63.4 billion export target for FY2026-27, aiming for 15 percent growth. However, economists and business leaders have warned that persistent domestic constraints and global economic uncertainties will make achieving the goal difficult.

Construction of China industrial zone begins (July 28)

Bangladesh launched construction of the $1.3 billion China Economic and Industrial Zone in Chattogram’s Anwara. The project aims to generate 100,000 jobs, attract export-oriented manufacturing, and serve as a cornerstone for economic growth.

S&P revises Bangladesh outlook to negative (July 29)

S&P Global revised Bangladesh's long-term credit outlook from stable to negative. The US-based ratings agency cited banking sector weaknesses, high inflation, fiscal constraints, and external headwinds, projecting average annual GDP growth of just 4.5 percent over the next three years.

Depositors of merging banks can withdraw up to Tk 10 lakh (July 30)

Bangladesh Bank allowed depositors of five merging Islamic banks to withdraw up to Tk 10 lakh for family medical treatment and emergencies. The central bank also suspended the profit haircut system as the merger forming Sammilito Islami Bank PLC nears completion.

CEPA with South Korea to be signed on Tuesday (July 31)

Bangladesh and South Korea will sign a Comprehensive Economic Partnership Agreement (CEPA) on Tuesday to boost duty-free market access ahead of least developed country (LDC) graduation. The deal aims to enhance bilateral trade, attract South Korean investment, and expand cooperation in services.