Global shipping giant Maersk has suspended services at Israel’s Haifa Port due to escalating regional conflict, especially after Israel’s airstrikes on Iran and Iran’s retaliatory missile attacks. The move raises fresh concerns over global trade routes, as key maritime passages like the Strait of Hormuz have become increasingly risky. Other Maersk operations in the region remain unaffected. Meanwhile, tanker shipping costs have surged sharply, with rates doubling within days, indicating the broader economic fallout of the ongoing Middle East tensions.

The World Bank has approved a $640 million loan for Bangladesh to strengthen energy security and improve air quality.

Gail Martin, the World Bank Country Director for Bangladesh, stated, “It is crucial to address the challenges of limited gas supply and urban air pollution in Bangladesh. These two projects will contribute to economic growth, enhance productivity, and create employment opportunities.”

Of the total, $350 million will be allocated to enhance energy sector security, while $290 million will be used for the Clean Air Project, which aims to adopt a comprehensive approach to tackling air pollution.

The Swiss National Bank has reported that deposits by Bangladeshi nationals in Swiss banks surged by 33 times in 2024, the year of the mass uprising, reaching an estimated BDT 8,500 crore.

Experts suggest the dramatic rise is linked to capital flight triggered by fears of regime collapse and the widespread corruption and money laundering that occurred during the Awami League’s rule.

The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support stabilization and reform in Bangladesh’s banking sector under the "Stabilizing and Reforming the Banking Sector Program – Subprogram 1."

Economic expert Sanjeeb Kaushik commented, “The major obstacles in Bangladesh’s banking sector are poor asset quality, liquidity shortages, and limited financial intermediation. This ADB initiative will enhance regulatory oversight and accountability in line with international standards and improve credit flow to SMEs.”

Keeping pace with the digital era, Bangladesh Bank has simplified the process for local companies to pay for advertisements on foreign platforms like Facebook and Google. Under the new policy, businesses can make payments through local advertising agencies without needing separate central bank approvals.

Banks are now authorized to process these payments on behalf of clients, provided that certain formalities are completed. Experts believe this move will make remittance procedures more seamless and business-friendly.

Defaulted loans in Bangladesh have nearly doubled in the last nine months, reaching Tk 4.2 trillion. In just three months, non-performing loans (NPLs) rose by Tk 745.7 billion, far outpacing overall loan growth. Key causes include loan rescheduling, reclassification of large loans, non-renewal of working capital loans, missed rescheduled payments, and interest accumulation on existing defaults. Private banks are worst affected, with some seeing NPL rates up to 98%. Experts urge asset seizures and special tribunals to restore banking sector health.

Despite rising global fuel prices driven by escalating tensions between Iran and Israel, the Bangladesh government currently has no plans to increase domestic fuel prices, according to Economic Advisor Dr. Salehuddin Ahmed.

Dr. Ahmed stated that while the global energy market is being affected by the ongoing conflict, the government is closely monitoring the situation and preparing for potential impacts on imports. "We are observing the developments carefully. If the conflict persists, it could affect the prices of imported goods, including fuel and fertilizer, as most of our imports pass through the Strait of Hormuz," he explained.

However, he assured that there is no immediate cause for concern. “The government does not believe there is a need to worry just yet. We remain hopeful that the conflict will not become prolonged,” he added.

The Anti-Corruption Commission (ACC) has formally requested assistance from the UK's National Crime Agency (NCA) to confiscate assets allegedly acquired illegally by Anisuzzaman Chowdhury Roni, brother of a former land minister, and Mohammad Adnan Imam, former chairman of NRB Commercial Bank. ACC Chairman Mohammad Moinuddin Abdullah claimed the duo laundered large sums of money and invested heavily in UK properties. He also mentioned investigations into corruption allegations involving MP Tulip Siddiq and former UK High Commissioner Saida Muna Tasneem and her husband.

Bangladesh Bank Governor Dr. Ahsan H. Mansur announced that five Shariah-based banks will be merged into one before the national election. No employees will lose their jobs, though some branches may be relocated. The decision follows major financial irregularities and high default rates — 76.69% of loans are non-performing. The merger excludes Islami Bank Bangladesh PLC, which will remain separate. Legal efforts to recover laundered money abroad are ongoing, with a focus on both court proceedings and out-of-court settlements.

Nvidia is no longer including China in its revenue and profit forecasts due to strict U.S. export controls. CEO Jensen Huang said the chances of these restrictions easing are slim in the near term. The U.S. now requires a license to export Nvidia’s advanced AI chip, the H20, to China. As a result, the company anticipates a revenue drop of up to $8 billion in Q2 (April–June) and is turning its focus to other global markets.

The escalating conflict between Iran and Israel could have far-reaching consequences for Bangladesh, especially if global oil prices surge. A potential closure of the strategic Strait of Hormuz would severely disrupt global energy supplies and affect Bangladesh’s imports across various sectors. While Bangladesh maintains limited direct trade ties with both Iran and Israel, prolonged instability in the Middle East could impact Bangladesh’s economy in three key areas: energy costs, overseas labor markets, and overall import channels. Notably, Iran has already threatened to block the Strait of Hormuz.

Bangladesh’s gross foreign exchange reserves have once again exceeded $26 billion, while net reserves have risen to $20.77 billion. The rise is attributed to an increase in remittance inflows, export earnings, and a $250 million disbursement from the World Bank. Despite floating the exchange rate, the value of the U.S. dollar remains stable.

Bangladesh’s defaulted loans have surged to Tk 4.20 trillion as of March 2025, up from Tk 3.45 trillion in December 2024 — a sharp rise of Tk 74,570 crore in just one quarter. The increase is largely tied to questionable loans disbursed under the previous government, with several banks now revealing the true extent of unpaid loans. Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank saw notable spikes. Currently, 24.13% of total bank loans are classified as defaulted.

Following a surge in cash withdrawals in March due to Eid-ul-Fitr spending and fears of bank instability, nearly Tk 190 billion was redeposited into banks in April. This shift signals growing public confidence in the banking sector, aided by Bangladesh Bank’s reforms and improved governance. Cash held outside banks dropped by 6.43% in April, while deposits rose by nearly Tk 20 billion. Analysts say increased liquidity will strengthen lending capacity and support investment, benefiting the overall economy.

Bangladesh’s business environment improved in May as political stability strengthened and inflation dropped to a 27-month low of 9.05%. The Bangladesh Purchasing Managers’ Index (PMI) rose by 6 points to 58.9, driven by strong growth in agriculture, manufacturing, and services. The agriculture sector expanded for the eighth straight month, while manufacturing continued its ninth month of growth. Though the construction sector remained stable, it showed no further improvement. The positive trend reflects easing cost pressures and improving investor confidence.