Economy regains stability, but household condition worsens: Hussain
Bangladesh’s economy has regained stability and economic activity has increased, compared to the 2022–23 fiscal year, former lead economist at the World Bank’s Dhaka office Zahid Hussain said (30 August).
“However, during the period, the situation at the household level has deteriorated, with poverty and inequality on the rise,” Zahid said during the Moazzem Hossain Memorial Lecture organised by the Economic Reporters Forum (ERF) in the capital.
Moazzem Hossain is the late editor of the English daily The Financial Express and the founding president of the ERF.
According to Zahid, the restored economic stability is primarily due to the removal of those responsible for previous instability.
“Money laundering from the country has stopped, resulting in a significant decline in hundi [informal money transfers] and an increase in foreign currency inflows.
“Meanwhile, looting within the banking sector has halted. Yet, the true condition of banks has not improved, as defaulted loans continue to rise,” he added.
He also highlighted the impact of international developments favourable to Bangladesh’s economy, particularly the notable decline in the value of the US dollar.
Local Chinese-government provincial economic powerhouse announces plans
A local government in China’s provincial economic powerhouse of Zhejiang has announced plans to subsidise the restaurant meals of high-value consumers, in a move that is intended to stimulate consumption but could raise questions about whether it runs contrary to the central government’s austerity drive.
Shaoxing – a city known for its textile industry and a prized variety of cooking wine – will offer subsidies of up to 5,000 yuan (US$700) to banquet holders if they host five or more tables and spend more than 10,000 yuan, as part of a series of consumption-boosting policies unveiled at a press conference by the municipal government on Tuesday.
The measure came as some local officials have found themselves caught between an urgency to encourage spending amid strained economic growth and an emphasis from leadership on limiting extravagant practices amid Beijing’s anticorruption campaign.
“Vigorously boosting and expanding consumption is a top priority at the national, provincial and municipal levels, essential for stable economic growth and meeting public demand for a better life,” Jin Yi, party secretary of the Shaoxing Development and Reform Commission, said at Tuesday’s conference.
He said Shaoxing’s new measures were expected to bring in an additional 178 million yuan (US$24.5 million) in funding this year by getting consumers to open their wallets across multiple sectors, and catering is a focal point alongside cars, housing and retail.
India’s economy grows at faster-than-expected 7.8pc
India’s economy grew at a faster than-expected annual rate of 7.8 percent in the quarter to the end of June, boosted by the manufacturing, construction and service sectors.
Annual manufacturing and services growth were at 7.7 percent and 9.3 percent, respectively, with the construction sector expanding by 7.6 percent.
While the overall gross domestic product print for the first quarter of the fiscal year 2026 came in higher than the 6.7 percent expansion forecast by economists in a Reuters poll, economists pointed to signs of a slowdown.
India’s nominal GDP — which does not account for inflation or deflation — fell to 8.8 percent over April-June, compared to 10.8 percent in the previous quarter.
“Nominal GDP growth is lower than previous quarters but because the deflator is so soft that the real GDP looks extremely strong,” says Anubhuti Sahay, head of Indian economic research at Standard Chartered.
A deflator measures the amount by which total output is reduced by inflation.
While the deflator has played a major role in making the real GDP growth look better, Sahay says on the manufacturing front corporate sector earnings have done well.
The U.S.′ 50 percent tariffs on Indian imports came into effect on Wednesday, with most economists seeing the trade measure playing into softening growth for India’s economy in the coming quarters.
The Indian rupee fell to record lows on Friday, breaching the 88-per-dollar mark for the first time over concerns that steep U.S. tariffs could hurt growth and further hit portfolio flows.
With Malaysia, Pakistan committed to deepen economic ties
A high-level delegation of the Islamabad Chamber of Commerce and Industry (ICCI) visited the iconic Petronas Towers in Kuala Lumpur at the invitation of Petronas management, highlighting the importance of energy cooperation between Pakistan and Malaysia.
The visit was specially arranged with the support of Dato Muhammad Azhar bin Mazlan, Ambassador of Malaysia to Pakistan. Speaking on the occasion, he said: “Malaysia and Pakistan enjoy a time-tested friendship rooted in mutual trust and shared prosperity. I am delighted to see ICCI’s leadership engaging with Petronas, one of Malaysia’s flagship companies. This initiative will open new doors for business cooperation and will further strengthen our bilateral economic ties.”
ICCI Senior Vice President Abdul Rehman Siddiqi said that energy—particularly petroleum—remains the backbone of modern economies, and Pakistan’s rapidly growing energy demand presents vast opportunities for international investors. He noted that Petronas had previously contributed to Pakistan’s energy sector and invited the company to return to Pakistan, re-establish its presence, and explore new ventures in exploration, refining, LNG, and downstream facilities.
He emphasized that Pakistan is implementing reforms and investment-friendly policies, making the petroleum and energy sector highly attractive for global companies. He assured Petronas management that ICCI and the business community would extend full cooperation to facilitate their operations in Pakistan.
ICCI Vice President Nasir Mehmood Chadurhy further highlighted that renewed engagement by Petronas would not only strengthen Pakistan’s energy security but also enhance bilateral trade and economic cooperation between Pakistan and Malaysia, opening new avenues of growth, technology sharing, and job creation.
Indonesia stocks, currency decline
Indonesia is facing a tough political climate, as it grapples with protests over rising living costs, lawmakers’ pay and police violence, hurting investor sentiment in Southeast Asia’s largest economy.
The Jakarta Composite Index fell as much as 3.6 percent on Monday, while the Indonesian rupiah depreciated to 16,500 against the U.S. dollar — its weakest intra-day level since Aug. 1 — according to LSEG data.
While the violence and protests have rattled investors confidence, they are unlikely to challenge the underlying growth story for Indonesia, several market watchers said.
The latest selloff was primarily “sentiment driven,” as investors reacted to developments over the weekend, said Howe Chung Wan, managing director and head of Asian fixed income at Principal Fixed Income.
Indonesia still ranks among the more stable emerging markets, Howe said, shrugging off impact from the demonstrations as a near-term setback. “I don’t think it completely changes the story at this point.”
The near-term potential softness for rupiah is expected to be temporary and will likely reverse when domestic uncertainties fade, according to Christopher Wong, FX analyst at OCBC Bank. He refrained from giving more precise forecasts, citing heightened uncertainty.
It was unclear if demonstrations in Jakarta or other cities will continue on Monday, with some Indonesian students and civil society groups having called off protests to avoid any violent escalation by authorities.
Investors will watch the government’s next steps to address the public’s demands and improve market confidence, said Ari Jahja, head of Indonesia research, Macquarie Capital. “On slight positive side, Indonesia could emerge stronger if structural reforms are executed.”
Nepal’s economy: a short review
Every day, Nepalese working abroad send home Rs 4.72 billion, amounting to Rs 1.72 trillion over the past fiscal year—an amount that rivals the national budget and underscores their crucial role in sustaining Nepal’s economy. These contributions have long been the backbone of Nepal’s economic stability, helping families, communities, and the national financial system thrive.
Remittances remain a cornerstone of Nepal’s economic development. In 2023, inward remittances surpassed USD 11 billion, representing roughly 26.6 percent of GDP—a figure that exceeds the combined inflows from official development assistance and foreign direct investment. According to mid-May data for fiscal year 2024/25, remittance receipts climbed to NPR 1,356.6 billion, up from NPR 1,198.6 billion the previous year, marking a notable increase of nearly NPR 158 billion.
With Nepal’s nominal GDP estimated at around USD 50 billion in 2025, these figures highlight the indispensable role of migrant workers. Remittances contribute not only to household consumption but also to foreign currency reserves, national savings, and financial sector stability, strengthening Nepal’s overall economic structure.
The Gulf region—including the UAE, Qatar, Saudi Arabia, and Kuwait—remains one of the most trusted employment destinations for Nepali workers. These countries provide opportunities in construction, hospitality, healthcare, and other sectors. Their growing economies and modern infrastructure create reliable and sustainable avenues for Nepali migrants to earn higher incomes, which are then invested back home.
The UAE, in particular, stands out for its safe working conditions, modern facilities, and strong bilateral relations with Nepal. Its continued collaboration ensures that migrant workers enjoy a secure and productive working environment while contributing significantly to Nepal’s economy.
For 2025 Singapore’s growth forecast raised to 2.4pc
Economists raised their forecast for Singapore’s economic growth in 2025 to 2.4 percent from 1.7 percent previously, after stronger-than-expected economic performance in the second quarter, according to the latest survey of the Monetary Authority of Singapore released on September 3.
The survey, sent out on August 12 to a total of 25 economists and analysts who closely monitor the Singapore economy, said the economy expanded 4.4 percent year-on-year in the second quarter, beating the median forecast of 3 percent in the previous survey.
For the third quarter, economists expect growth to ease to 0.9 percent year-on-year.
Inflation projections remain subdued, with headline consumer prices forecast to rise 0.8 percent and core inflation 0.6 percent in the third quarter.
Geopolitical tensions, including the introduction of semiconductor and pharmaceutical tariffs, were cited as the most significant downside risk to Singapore’s outlook. Respondents also pointed to external slowdowns and financial market volatility as potential risks.