Bangladesh Bank’s latest report shows a steep decline in consumer loans during the July–September 2025 quarter, with total outstanding loans falling by over Tk 22,000 crore compared to the previous quarter. At the end of September, consumer loans stood at Tk 1,50,340 crore, representing 8.63% of total bank credit, down from Tk 1,72,621 crore or 9.95% in June. This marks a sharp reversal from the April–June quarter, when consumer lending had increased by nearly Tk 25,000 crore.

Economists and banking officials attribute the contraction to persistently high inflation, rising borrowing costs, and continued economic uncertainty following political transitions. Interest rates on personal loans now range between 11% and 14%, while credit card rates have reached up to 25%. The largest declines were seen in loans for electronics, vehicles, and housing.

Analysts warn that reduced consumer borrowing could further dampen domestic demand, slowing retail and service sectors. The central bank is expected to monitor credit trends closely as inflationary pressures and liquidity constraints continue to challenge household spending.

Bangladesh’s export earnings have slowed in the 2025–26 fiscal year, driven largely by a downturn in the ready-made garment (RMG) sector, which accounts for nearly half of total exports. According to the Export Promotion Bureau, exports to the European Union fell by 1.03% year-on-year between July and November, totaling $7.83 billion. While shipments to Spain, Poland, and the Netherlands rose slightly, exports to Germany, France, Denmark, and Italy declined, reflecting reduced consumer demand and intensifying competition.

Industry leaders attribute the slump to global inflation, higher living costs in Europe, and aggressive pricing by China and India. Domestically, rising gas prices—up nearly 150% since 2023—and higher lending rates have strained production. Exporters also cite reduced cash incentives, now at 2% from 5%, and weak marketing strategies as key challenges. The Exporters Association of Bangladesh warns that without policy support and energy cost relief, more factories may close, deepening the sector’s crisis.

The RMG industry, employing millions, faces mounting pressure to diversify products and markets. Analysts expect export recovery to hinge on energy stability, financial reforms, and renewed trade competitiveness in 2026.

A livestock quarantine station built at Bilonia land port in Feni’s Parshuram upazila has remained unused since its completion nearly a decade ago. The facility, constructed in 2016 under the Department of Livestock Services’ disease prevention project, was intended to inspect imported animals and animal products before entry into Bangladesh. Despite an investment of several crore taka and installation of 51 laboratory instruments, the station has never been operational.

Local traders and officials report that the station’s inactivity has led to the decay of expensive equipment, with only a single outsourced guard maintaining the premises. The Bilonia land port, opened in 2009 to facilitate trade with India, has seen minimal import activity, undermining the station’s purpose. Officials note that activating the facility could help regulate livestock imports, curb smuggling, and increase government revenue.

Experts warn that prolonged neglect of such infrastructure not only wastes public funds but also weakens border biosecurity. The Livestock Department has indicated that operationalization depends on renewed diplomatic and trade engagement with India.

Bangladesh’s government employees have postponed their previously planned protest program demanding implementation of the ninth pay scale. The decision was announced at a press conference held at the National Press Club under the banner of the Bangladesh Government Employees Demand Fulfillment Unity Council. The postponement was made to honor the late Shahid Sharif Osman Hadi, spokesperson of the Inquilab Mancha, and in consideration of the current national situation.

Union leaders reiterated their seven-point demand, urging the government to publish a gazette with recommendations for a discrimination-free ninth pay scale by December 31. They warned that if no visible progress is made by January 1, they would launch tougher programs. The leaders also paid tribute to Hadi, recalling his lifelong activism against inequality and pledging to continue his struggle for fair treatment of government employees.

The next announcement on December 26 is expected to outline the future course of action, potentially shaping the trajectory of public sector wage reform in Bangladesh.

After more than a decade of waiting, the Sonalia-Kortia railway station in Tangail has officially opened to the public. The inauguration took place on Saturday morning when Bangladesh Railway Director General Afzal Hossain cut the ribbon and waved the green flag to mark the first train’s departure. Senior railway officials, local leaders, and hundreds of residents attended the ceremony, celebrating the long-anticipated launch.

The station, located in Sonalia village of Basail upazila near the border of Tangail Sadar’s Kortia area, was constructed around 2010 but remained unused due to naming complications and administrative delays. Locals expressed relief, noting that the unused facility had been wasting government resources. They expect the new station to benefit several hundred thousand residents across three upazilas. Officials confirmed that initially one train will operate, with plans to include the Sirajganj Express and a new Tangail commuter service in the future.

The reopening is expected to boost local trade and connectivity in the Kortia commercial zone, while residents have also called for improvements to surrounding roads and transport infrastructure.

National Life Insurance Company Limited has been awarded the Gold Medal in the Life Insurance category at the 15th ICMA Bangladesh Best Corporate Award 2024. The award ceremony took place on December 17 at the Bangladesh-China Friendship Conference Center, where Commerce Adviser Sheikh Bashir Uddin presented the honor to CEO Md. Kazim Uddin and CFO Probir Chandra Das FCA.

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) recognized National Life for its excellence in corporate governance, transparency, and contribution to the national economy. Senior officials including NBR Chairman Md. Abdur Rahman Khan, Commerce Secretary Mahbubur Rahman, and Financial Reporting Council Chairman Dr. Md. Sajjad Hossain Bhuiyan attended the event.

This marks the fourth consecutive year that National Life Insurance has received the prestigious Gold Award, reinforcing its leadership in Bangladesh’s life insurance sector and its commitment to ethical business practices and financial reporting standards.

Bangladesh’s Adviser on Shipping and Labour, Brigadier General (Retd.) Dr. M Sakhawat Hossain, inaugurated a new launch terminal at Dhalchar (Ananda Bazar) in Charfashion upazila of Bhola district. The terminal, established by the Bangladesh Inland Water Transport Authority (BIWTA), aims to provide safe and regular river transport to one of the country’s most remote island regions near the Meghna River estuary and the Bay of Bengal.

For decades, residents of Dhalchar faced severe travel hardships due to unsafe and irregular boat services, especially during adverse weather and tidal conditions. Speaking at the inauguration, Dr. Hossain said the new facility would ease access to healthcare, education, and administrative services while boosting local economic activity. BIWTA Chairman Rear Admiral Arif Ahmed Mostafa and local officials attended the event.

The government has prioritized developing water transport infrastructure to integrate marginal and isolated island communities into the national development framework. Officials said the project reflects a broader goal of ensuring equitable growth across Bangladesh’s riverine regions.

European Union leaders have agreed to provide Ukraine with an interest-free loan worth $105 billion over the next two years. The decision, announced by European Council President António Costa, aims to support Ukraine’s defense and budget needs without relying on frozen Russian assets. The financing will instead be raised from capital markets and secured against the EU budget, according to reports from Reuters and Al Jazeera.

Ukrainian President Volodymyr Zelensky expressed gratitude to the EU, noting that the funds will help cover Kyiv’s budget deficit and strengthen its defense capabilities amid the ongoing conflict with Russia. The agreement was reached after lengthy late-night negotiations on December 18, marking a significant show of unity among EU leaders.

By opting for market-based financing, the EU temporarily steps away from the contentious plan to use seized Russian assets to fund Ukraine’s war effort. Analysts say the move could ease internal divisions within the bloc while ensuring continued financial backing for Ukraine through 2027.

The interim government’s initiative to reopen six state-owned sugar mills—closed during the previous Awami League administration—has stalled a year after its announcement. Despite forming a 13-member task force and submitting funding requests to the Finance Ministry, no budget allocation has been approved. The mills in Shyampur, Setabganj, Rangpur, Panchagarh, Pabna, and Kushtia remain idle, deepening frustration among workers, officials, and sugarcane farmers.

According to officials, the Bangladesh Sugar and Food Industries Corporation (BSFIC) sought over Tk 63 crore for two mills, but the Finance Ministry did not respond, citing lack of prior consent. Meanwhile, the Kushtia Sugar Mill is being considered for transfer to the Bangladesh Economic Zones Authority (BEZA), sparking institutional disagreement. BSFIC has formally objected to the move, while BEZA argues the site is ideal for agro-processing investment.

The prolonged closure has reduced national sugar output and inflated prices, while unresolved debts and unpaid government dues continue to strain the sector. Without funding clarity, the reopening timeline remains uncertain.

European Commission President Ursula von der Leyen has called on the European Union to reduce its economic overdependence and strengthen its global competitiveness through a wider network of free trade agreements. Speaking in Brussels ahead of the European Council summit, she emphasized the strategic importance of finalizing the proposed trade deal with South America’s Mercosur bloc, describing it as a gateway to a market of 700 million consumers.

However, the Mercosur agreement has sharply divided EU member states. France and Italy, led by Emmanuel Macron and Giorgia Meloni, oppose the deal over concerns about environmental standards, agricultural safeguards, and regulatory clarity. Germany and Spain, in contrast, argue the pact would boost exports and diversify trade ties at a time of weak growth. Farmers’ unions across Europe have also voiced strong resistance, fearing cheap imports could undermine domestic producers.

Thousands of farmers were expected to protest in Brussels as leaders met, underscoring the political sensitivity surrounding the deal. The outcome of the summit may determine whether the EU can balance trade expansion with internal protectionist pressures.

India is fast-tracking a series of free trade agreements (FTAs) as it faces mounting pressure from the United States’ steep import tariffs and growing global trade instability. The move follows Washington’s decision in August to impose a 50% import duty on Indian textiles, auto parts, metals, and labor-intensive goods—measures that have significantly weakened India’s export competitiveness.

Trade analysts say New Delhi is using FTAs as a strategic tool to offset the long-term effects of unpredictable US tariffs. India currently has 15 active FTAs, six under priority negotiation, and more than 50 new deals under discussion with partners including the European Union, New Zealand, Chile, and Oman. Analysts note that once completed, India will have trade agreements with nearly all major economies except China.

However, experts caution that India’s rapid pivot toward multiple trade alliances could expose its diplomatic imbalance and erode its traditional defensive trade posture, potentially creating vulnerabilities for its future economic interests.

Bangladesh received $2 billion in remittances during the first 17 days of December 2025, marking a 14% increase compared to the same period last year, according to Bangladesh Bank spokesperson Arif Hossain Khan. The central bank’s data shows that expatriate income continues to rise steadily, reflecting stronger inflows through formal banking channels.

In November 2025, remittances totaled $2.889 billion, up 31.37% from $2.199 billion in November 2024, making it the highest monthly inflow in six months. From July to December 17 of the current fiscal year, Bangladesh received $15.04 billion in remittances, compared with $12.89 billion during the same period last year—a 16.7% year-on-year growth.

Economists attribute the surge to improved exchange rate management and incentives for remittance senders. The continued rise in remittance inflows is expected to support Bangladesh’s foreign exchange reserves and help stabilize the local currency amid global economic uncertainty.

Global gold prices surged again this week, nearing record highs as investors turned to the precious metal amid a weakening U.S. dollar and falling Treasury yields. In Dubai, 24-carat gold rose to 524.50 dirhams per gram on Thursday, just below the year’s peak of 525.25 dirhams recorded in October. Prices for other purities also climbed, with 22-carat gold at 485.75 dirhams and 18-carat at 399.25 dirhams.

Analysts attribute the rise to concerns over the U.S. Federal Reserve’s independence and fears of political interference, which have heightened uncertainty in financial markets. Hani Abuagla, senior market analyst at XTB MENA, noted that geopolitical tensions across Europe, the Middle East, and Asia are further driving demand for gold as a safe-haven asset.

Experts describe 2025 as a pivotal year for gold, with inflation trends, economic slowdowns, and potential restrictive policies likely to sustain upward pressure on prices. Investors are expected to closely monitor central bank actions and global risk developments in the coming months.

The National Board of Revenue (NBR) of Bangladesh has introduced a new sub-module called 'Truck Movement' under the ASYCUDA World System to digitally monitor the movement of goods-laden trucks entering from India. The system electronically records each truck’s entry, duration of stay, and return of empty vehicles, replacing the previous manual process that was time-consuming and prone to errors. A pilot program began on December 15 at the Benapole Customs House in Jashore.

According to the NBR, the automated system will ensure real-time tracking and reporting of cross-border truck movements, improving efficiency in data management and minimizing revenue leakage. Officials believe the initiative will strengthen transparency and accountability in customs operations while enhancing border security. The NBR emphasized that accurate data will also help improve customs supervision and tax collection.

The revenue authority plans to expand the 'Truck Movement' module to all land ports across the country soon. Experts expect the system to modernize import operations, streamline border trade, and support Bangladesh’s broader digital governance goals.

The SME Foundation of Bangladesh announced that 138 individuals, including 72 men and 66 women, have successfully become entrepreneurs through its Business Incubation Center. The participants received training, mentorship, and business advisory support, along with opportunities to showcase their products at national and international trade fairs in the UK, China, Sri Lanka, and Nepal. A certificate distribution ceremony was held on December 18, 2025, in Dhaka, with senior officials from the SME Foundation and Startup Bangladesh in attendance.

Chairperson Md. Musfiqur Rahman emphasized that the incubation center provides essential business knowledge, workspace, networking, and technical assistance to new entrepreneurs. The initiative aligns with the government’s National Industrial Policy 2022 and the SDG 2030 agenda. According to the Bangladesh Bureau of Statistics, SMEs contribute about 30% to the national economy and employ over 30 million people.

The program is expected to further strengthen Bangladesh’s SME ecosystem, enhance women’s participation, and support sustainable economic development through innovation and capacity building.