The Bangladesh Bank (BB) has revised its prudential regulations on consumer financing, raising the ceiling for auto and personal loans and introducing incentives to promote electric and hybrid vehicles.

The central bank issued a circular in this regard yesterday, stating that banks will now be allowed to provide auto loans of up to Tk 80 lakh per individual, including insurance coverage, for purchasing electric and hybrid vehicles.

Previously, banks could provide auto loans of up to Tk60 lakh per individual for conventional vehicles, with no separate ceiling for electric and hybrid vehicles.

The BB said it set the new limit for purchasing electric and hybrid vehicles to encourage environmentally friendly transport.

The regulator also eased equity requirements for such vehicles. While conventional auto loans must maintain a maximum debt-equity ratio of 60:40, loans for electric and hybrid cars can now be extended at a more relaxed ratio of 80:20.

The BB said the changes were made in consideration of rising automobile prices and the growing demand for cleaner and more energy-efficient vehicles in the country.

The regulator also revised limits on personal loans, including those for consumer durables. Under the new rules, individuals can take out unsecured personal loans of up to Tk 10 lakh, up from the previous limit of Tk 5 lakh.

Banks may lend higher amounts if backed by proper securities, but the total loan in such cases cannot exceed Tk 40 lakh. Earlier, this limit was Tk 20 lakh.

Loans secured against liquid assets will remain outside this cap, as per the circular.

The regulator noted that Bangladesh’s consumer market has expanded significantly in recent years, driven by rising per capita income and steady economic growth.

As per the circular, the BB imposed a prudential safeguard, directing banks to ensure that growth in consumer loans does not exceed the overall loan growth of the respective bank.

The latest instructions supersede previous circulars issued in 2004, 2017, and 2024 on consumer financing. The directive, issued under the Bank Companies Act, 1991, took effect immediately.

The Asian Development Bank (ADB) has agreed to provide $1 billion in budget support to Bangladesh by June to tackle economic challenges stemming from soaring energy prices triggered by the Middle East war situation.

Finance Minister Amir Khosru Mahmud Chowdhury shared the development following a meeting with ADB President Masato Kanda at the 59th Annual Meeting of the ADB currently being held in Samarkand, Uzbekistan.

Khosru, Economic Relations Division Secretary Md Shahriar Kader Siddiky, and several senior officials are attending the four-day event that began on May 3.

“They have agreed to provide $1 billion by June this year. This could potentially increase if needed in the coming days,” he told The Daily Star in an interview after the meeting.

Bangladesh earlier sought $1 billion from the Manila-based lender to shield its economy from global shocks triggered by the US-Israel war on Iran, which led to a spiral in oil prices.

The South Asian country meets 95 percent of its fuel needs through imports, primarily from Gulf countries including Saudi Arabia, the United Arab Emirates, and Qatar.

The war affected supplies as Iran blocked the Strait of Hormuz, through which one-fifth of global oil and a good portion of gas passes.

On Monday, during a session of the Board of Governors at the ADB’s annual meeting, Khosru sought expanded support for Bangladesh from the ADB, as geopolitical tensions, inflation, and supply chain disruptions have increased the country’s energy-related expenditures by an estimated $3 billion.

Following his meeting with President Kanda, the finance minister said Bangladesh had asked for counter-cyclical support if the war continues. While the issue did not come up in yesterday’s discussion, he noted, “It is in our proposal.”

Apart from budget support, both sides discussed issues ranging from the BNP-led government’s election manifesto and digital transformation to the ADB’s support for achieving the target of 10,000 megawatts of clean energy by the 2030s.

They also discussed the North-West Dhaka South-East Economic Corridor, involving about $79 billion proposed by the ADB to Bangladesh under a 20-year development plan, as well as a visit by the ADB president to Dhaka and technical assistance for the development of the capital market.

The finance minister said the ADB has a commitment to provide $1.4 billion for the fiscal year 2025-26.

“And the necessity of the fund can be discussed in the coming days and increased if needed,” he said.

Khosru stated that the ADB is “fully aligned” with the current government’s election manifesto, ensuring that all future programmes and projects will be consistent with national priorities.

“This is the biggest thing. I mean, when working with any multilateral body, this issue often arises where they want one thing, and the government wants another. This will not happen in this case,” he said. “Therefore, all programmes, support, and projects will be in accordance with our manifesto in Bangladesh. This is a very important thing.”

Khosru noted that discussions took place regarding Bangladesh’s renewable energy target, stating that the ADB’s interest in this area is very high.

“They will assist, and some countries, like Germany, have also shown interest, and there is a possibility of them joining this project too. Therefore, we are hoping for a large portfolio here in the coming days.”

“Germany is very interested in renewables because of current climate issues. They have many climate-friendly projects in their own country in various ways, among which renewable energy -- the issue of electricity -- is of great interest to them, and we might get major cooperation in this area,” he added.

On the capital market, the finance minister said ADB’s technical support is needed to improve Bangladesh’s market, provide protection to investors, and support listed companies.

“And the deregulation we have been talking about for so long-- serious deregulation is needed. When we talk about taking it from a frontier market to an emerging market, their support will mainly come in this area.”

“The rest of the work has to be done by our government. So, we will move forward in this matter. And digitalisation is a big issue here; we will work with them on that too,” the minister added.

Khosru mentioned the North-West Dhaka South-East Economic Corridor, describing it as a project running from the northern region to Chattogram, integrating growth centres -- such as the potential for light engineering in Bogura or agricultural processing opportunities in other regions -- that are in our minds and also in theirs.

“So, keeping in mind the facilities of each region, we, along with the ADB, have sat together and brought this whole project to a certain point. I hope this will be finalised once we return to Dhaka and the ADB president visits,” he said, expecting the visit by the end of this month.

Responding to a question on the progress of discussions regarding the release of two instalments of the $5.5 billion loan from the International Monetary Fund (IMF), Khosru said discussions have been ongoing with the Washington-based lender.

“We are an elected government, and we must take decisions very thoughtfully,” he said. “Ending a discussion is very easy, but I cannot take any decision outside of my country’s interest or the interest of our people.”

Governments in Asia, the top oil importing region, are scrambling to find alternatives and insulate their economies from the worst of the energy crisis triggered by the Iran war, but the pain is getting increasingly costly.

The disruption spurred the Asian Development Bank to cut its growth forecast for developing Asia and the Pacific to 4.7% this year and 4.8% in 2027, down from 5.1% for both years previously, and lifted its inflation outlook to 5.2% for this year.

Overall oil imports to Asia, which takes 85% of Gulf crude shipments, plunged 30% in April on the year, to their lowest since October 2015, Kpler data shows, after two months of the near-closure of the Strait of Hormuz, a key chokepoint for a fifth of global oil and gas supplies.

Fiscal strains are mounting across the region, particularly South Asia, as governments spend billions of dollars on subsidies and import duty waivers to compensate.

"The first line of defence ... is that the governments decided to absorb the initial shock by either providing subsidies or cutting excise duties on fuel products," said Hanna Luchnikava-Schorsch of S&P Global Market Intelligence.

India's state-dominated refining sector has kept fuel prices steady despite surging crude costs, losing about 100 rupees ($1.06) a litre on diesel and 20 rupees on petrol, but some analysts forecast price hikes after state polls ended in April.

Many regional governments have moved to limit fuel use or clamp down on hoarding, while several have curbed exports and many, including Australia, have espoused diplomatic efforts to ensure access.

China, the world's biggest oil importer, has shielded itself with sizeable reserves, a diverse energy supply chain and export curbs on fuel and fertiliser, although Beijing is making exceptions for some regional buyers, from Australia to Myanmar.

Even as governments tap fiscal resources, forex reserves and oil inventories, the war's economic impact on Asia has not been as bad as feared, Goldman Sachs said.

Nevertheless, it trimmed 2026 growth forecasts for Japan and some Southeast Asian countries and slightly lifted inflation expectations, while warning of a key unresolved question.

"How much of the resilience thus far reflects structural factors versus unsustainable declines in buffer stocks?" its analysts said in a note.

First lines of defence

Asia's emerging market currencies have fallen furthest and to lower lows against the dollar, compared with global peers and the region's bigger currencies, with the peso, rupee and rupiah all making record lows.

Since the war started at the end of February, the Philippine peso has dropped more than 5%, the Thai baht and rupee more than 3% each and the rupiah more than 2.5%.

By contrast China's yuan is the region's top performer, up 0.8% against the dollar, while Japan has intervened to push up the yen, to stand 0.4% higher than pre-war levels. South Korea's won is down about 1.1%.

The South Asian economies of Pakistan, Bangladesh and Sri Lanka are the most vulnerable to the burdens triggered by the crunch, S&P Global Market Intelligence said.

Pakistan, for example, recently issued its first tenders since 2023 to buy liquefied natural gas.

It is looking to replace supply it is unable to source from Qatar, paying $18.88 per million British thermal unit for one cargo, or roughly $30 million more than market prices before the war, according to Reuters calculations.

"These countries use more of their resources on subsidising domestic public energy enterprises and basically shielding the final consumers from the energy price shock," added Luchnikava-Schorsch, the S&P unit's head of Asia-Pacific Economics.

"These are also the countries which have the slimmest fiscal buffers."

Still, regional economies are better positioned than when the start of the Ukraine war in 2022 triggered the last energy shock, she said.

Coping mechanisms

Responses across Asia are shaped by the circumstances of individual nations.

For example, energy producer Indonesia has told operators to prioritise the domestic market over exports and is halting LNG shipments that were not under contract.

Southeast Asia's biggest economy is also looking to Africa and Latin America to replace Middle Eastern oil, and plans to buy 150 million barrels from Russia by year-end.

In Thailand, a source at a state-owned refiner said the firm had paused crude purchases as national stocks of refined products rose after refineries stepped up output and a government ban closed off exports.

At the same time, curbs on energy use and high prices have led to falling demand, he added.

Japan, which buys 95% of its oil from the Middle East, has stepped up purchases of US oil, paying spot market prices that soared after the start of the war, plus the cost of shipping from the US, which takes twice as long as from the Gulf.

On Friday, Japan began releasing 36 million barrels of crude from stockpiles, its second release since the start of the war.

Oil prices fell for a second day on Wednesday on expectations bottled up supply from the key Middle East producing region could resume flowing after US President Donald Trump indicated a possible peace deal may be reached to end the war with Iran.

Brent crude futures for July fell $1.52, or 1.38%, to $108.35 per barrel as of 0103 GMT, after dropping 4% in the previous session. US benchmark West Texas Intermediate futures for June declined $1.50, or 1.47%, to $100.77, after closing down 3.9% the day before.

On Tuesday, Trump unexpectedly said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress towards a comprehensive agreement with Iran, without giving details on the agreement.

There was no immediate reaction from Tehran, where it was very early on Wednesday morning.

Still, Trump said the US Navy would continue its blockade of Iranian ports. The Strait of Hormuz, which typically carries cargoes equal to about one-fifth of the world's oil and natural gas supply, has been most cut off since the US-Israeli war against Iran began on 28 February.

The supply loss to the global market has pushed prices higher with Brent trading last week at its highest since March 2022.

"We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom ... will be paused for a short period of time to see whether or not the Agreement can be finalised and signed," Trump wrote on social media.

Trump's announcement came only hours after US Secretary of State Marco Rubio briefed reporters on the effort, announced on Sunday, to escort stranded tankers through the strait. On Monday, the US military said it had destroyed several Iranian small boats, as well as cruise missiles and drones, while guiding two vessels out of the Gulf through the strait.

The Strait of Hormuz closure has drawn down global inventories as refineries try to make up the shortfall.

US crude oil inventories fell for a third week, while petrol and distillate stocks also declined, market sources said on Tuesday, citing American Petroleum Institute figures.

Crude stocks fell by 8.1 million barrels in the week ended 1 May, the sources said. Petrol inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to a week earlier, the sources said.

Bangladesh Bank (BB) has instructed all scheduled banks to set and disburse specific credit targets for raw hide traders to ensure smooth collection, preservation, and marketing of hides during the upcoming Eid-ul-Azha.

The directive was issued today through BRPD Circular, highlighting the leather sector as a vital labour-intensive and export-oriented industry, reports BSS.

The central bank noted that the sector plays a significant role in generating national income and foreign exchange, largely depending on domestically sourced raw materials.

According to the circular, nearly 50 percent of the industry’s annual raw material supply comes from animals sacrificed during Eid-ul-Azha, making timely and adequate financing crucial for maintaining economic stability in the sector.

To ensure sufficient liquidity, the central bank directed that the credit target for raw hide purchases in 2026 must not be lower than the target set for 2025.

It also stressed that financing facilities must reach the grassroots level, enabling seasonal traders and small-scale merchants to actively participate in the procurement process. Loans are to be disbursed based on established bank-client relationships.

In a move to facilitate fresh financing, the central bank has allowed the rescheduling and relaxation of existing loans, including those of defaulted borrowers in the leather sector. Globaltrade insights

Banks have been instructed to complete the rescheduling process—along with compromised amount arrangements—by June 30, 2026. This measure is intended to help borrowers clear outstanding obligations and access new funds for the current season.

For monitoring and compliance, all scheduled banks are required to submit detailed reports on their credit targets and actual disbursements, following the prescribed format, to the Director of the Banking Regulation and Policy Department-1 by July 31, 2026.

The directive was issued under Section 45 of the Bank Company Act, 1991.

Summit Alliance Port Limited, one of the country's leading inland container terminals and logistics operators, reported a 26% decline in export freight earnings in the July-March period of FY26, weighed down by weaker export container handling and a challenging global trade environment.

In its unaudited financial statement for the first nine months of the fiscal year, the company said export freight income fell to Tk310.64 crore. The downturn in exports dragged overall performance, with consolidated revenue – covering both export and import container freight and handling – falling 18% to Tk499.88 crore.

Net profit declined sharply by 31% to Tk38.27 crore, while consolidated earnings per share dropped to Tk1.62 at the end of March 2026, compared to Tk2.34 in the same period of the previous fiscal year.

The company attributed the weaker performance largely to its subsidiary Container Transportation Services Limited (CTSL), which faced lower cargo volumes, higher operating costs, and pressure from geopolitical tensions in the Middle East.

It also cited subdued export activity and heightened competition in the freight forwarding segment, which compressed margins despite efforts to expand services.

The trend aligns with broader export weakness, as Export Promotion Bureau data showed national export earnings fell nearly 5% to $35.39 billion in the same period.

CTSL remains the group's main revenue driver, leaving overall performance highly sensitive to export volumes and global trade conditions.

In January 2025, the company entered a strategic partnership with Germany's Hellmann Worldwide, which subscribed to 3.33 lakh CTSL shares at Tk66.50 each to strengthen regional logistics capacity. However, the benefits have yet to offset weaker demand and lower freight rates.

Yesterday, Summit Alliance Port shares fell 1.75% to Tk50.40 on the Dhaka Stock Exchange.

The government is advancing discussions with UAE-based port operator DP World on the long-term leasing of Chattogram Port’s largest functional New Mooring Container Terminal (NCT).

The company has also proposed operating the adjoining Chittagong Container Terminal (CCT) along with NCT as a single integrated terminal.

The last interim government was close to finalising a deal with DP World to operate NCT. But in the wake of a wildcat strike enforced by port employees and workers, it has to suspend the move just before the parliamentary election in February. The new government, however, is continuing the talks.

At the fourth joint public-private partnership platform meeting of the Bangladesh-Dubai government-to-government platform held in Dubai on April 8, it was agreed that negotiations should be concluded within the validity period of the request for proposal for NCT.

According to meeting minutes obtained by The Daily Star, the session was convened to review the progress of four projects currently placed on the platform and to discuss next steps.

NCT topped the list of projects, which also included Bay Container Terminal, Dhirasram Inland Container Depot (ICD), and a digital platform with a single window system.

The agenda also featured three other projects, including modernisation of the CCT, the port’s oldest container terminal with two jetties.

According to the minutes, the UAE firm expressed interest in modernising and operating CCT, adjoining NCT, to develop them as one integrated terminal.

The Bangladesh government agreed to consider placing CCT on the Bangladesh-Dubai Joint Platform and to discuss it as a separate project in future meetings.

The CCT has the capacity to handle 6 lakh twenty-foot equivalent units of containers every year.

At the meeting, DP World requested greater transparency on the revenue, cost, and manpower structure of the Chittagong Port Authority with respect to NCT’s operation.

The firm also stressed the need to reconsider the proposed 15-year concession tenure and the additional expenditure required for modernising the terminal.

It was decided that DP World, as the bidder for the NCT project, should submit all comments, suggestions, concerns, negotiation milestones, and a revised bid, if necessary, at the earliest.

Regarding Dhirasram ICD, to be built by Bangladesh Railway, DP World as the intended operator, is set to submit a refreshed formal technical recommendation. The firm also expressed interest in considering capital investments in locomotives, rolling stock, and other rail freight infrastructure.

Discussions were also held on three other projects, including a free trade zone adjoining Chattogram Port, CCT, and Nimtala ICD.

Ashik Chowdhury, chairman of the Bangladesh Investment Development Authority and executive director of the Public Private Partnership Authority, led the four-member Bangladesh delegation.

It included the then shipping ministry secretary, Dr Nurun Nahar Chowdhury, and Bangladeshi ambassador to the UAE, Tareq Ahmed.

Indian businesses have urged Bangladesh to ensure institutional stability, policy consistency, and reduce logistics bottlenecks to enhance bilateral trade and attract foreign direct investment (FDI).

They also expressed optimism that the proposed Comprehensive Economic Partnership Agreement (Cepa) between the two neighbouring countries could significantly expand trade and investment flows.

The observations came during a meeting between leaders of the Confederation of Indian Industry (CII) and a visiting Bangladeshi media delegation in New Delhi.

Pankaj Tandon, a member of CII's South Asia Committee, said that strengthening institutions and ensuring policy predictability are key to boosting investor confidence.

"To boost investment and trade, Bangladesh needs institutional stability, policy consistency, and stronger institutional accountability," he noted.

He added that the current phase of Bangladesh-India relations is critical not only for sustaining existing ties but also for shaping the next stage of economic partnership to support Bangladesh's long-term growth and competitiveness.

Describing Bangladesh as India's largest trading partner in South Asia, Tandon said bilateral trade stood at over $13 billion in the 2024-25 fiscal year.

"Bangladesh's industrial strength and India's manufacturing and services sectors complement each other, creating opportunities for integrated regional value chains," he said.

He also highlighted potential areas of collaboration, including medical tourism, food processing, agricultural value chains, the digital economy, startups, energy cooperation, and SME linkages.

According to Tandon, India's expertise in digital public infrastructure, fintech, renewable energy, manufacturing excellence, and sustainable development could support Bangladesh's economic transformation.

Regarding restrictions on Bangladesh's ready-made garment (RMG) exports through Indian land ports, he said CII could work jointly on the issue if Bangladeshi business chambers formally raise it.

He reaffirmed CII's commitment to working closely with Bangladeshi organisations to deepen bilateral business-to-business engagement and strengthen economic cooperation.

At the event, Geetanjali Nataraj of CII delivered a presentation, while Manish Mohan, director of CII, also spoke.

Bangladesh Bank's planned Tk40,000 crore refinance scheme to revive closed factories has raised concerns among economists and officials over its potential macroeconomic impact.

The initiative aims to boost production and protect jobs, but questions remain over how it will be financed.

Analysts say the source of funds will be critical in determining whether the scheme adds pressure on prices.

Concerns over inflation

Economists and central bank officials have cautioned that financing the scheme through fresh money creation could increase inflationary pressure by expanding the money supply.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, said the issue is particularly important at a time when many banks are facing liquidity shortages and government revenue growth remains under strain.

"At present, many banks are facing liquidity shortages, and government revenue growth is also under pressure. If the central bank directly finances the scheme, it could add to inflationary pressure by increasing the money supply," she said.

She suggested that the fund could be mobilised through a combination of sources, including banks with stronger liquidity positions and allocations from the national budget, to help reduce inflation risks.

A senior Bangladesh Bank official also warned that injecting the full amount through the central bank could have a multiplied impact on overall liquidity due to the money multiplier effect.

"If the full Tk40,000 crore is injected by the central bank, the overall impact on the economy could be several times higher, putting additional pressure on prices," the official said.

The official added that such a move could complicate the central bank's efforts to control inflation, potentially creating a policy trade-off between maintaining price stability and supporting employment and industrial recovery.

MJL Bangladesh PLC, a leading lubricant and energy company, reported a 27% drop in consolidated net profit in the first nine months of FY26, primarily due to lower revenue and the withdrawal of key tax benefits.

According to the company's unaudited financial statements for the July-March period, the consolidated net profit dropped to Tk187.23 crore, down from Tk256.21 crore in the corresponding period of the previous year.

This downturn significantly impacted the company's earnings per share (EPS), which settled at Tk5.91 at the end of the first three quarters, compared to Tk8.09 during the same period a year earlier.

The company's consolidated net revenue also experienced an 8% decline, falling to Tk3,016 crore from Tk3,263 crore.

Management attributed the earnings slump to a combination of an 8% decline in revenue, a rise in minimum tax from 0.6% to 1%, and the withdrawal of a tax exemption on its oil tanker operations.

Standalone net profit also fell by over 17%, largely driven by the reduced profitability of the oil tanker segment.

However, the company posted a strong rebound in the third quarter. In January-March 2026, MJL's consolidated net profit rose 44% to Tk65 crore, supported by an 18% surge in revenue, which climbed to Tk1,148 crore, alongside a reduction in finance costs.

MJL Bangladesh, known for its state-of-the-art lube oil blending plant, remains a dominant provider of high-performance lubricants and energy solutions in the local market, while also maintaining an active presence in international exports.

MJL Bangladesh shares price edged up by 0.68% today (4 May) to reach at Tk88.70 at the Dhaka Stock Exchange.

Bangladeshi garment exporters will today ask visiting US trade officials in Dhaka to clarify how a promised zero reciprocal tariff will apply to apparel made with American cotton and other US textile inputs.

The provision is included in the US-Bangladesh Agreement on Reciprocal Trade signed in February this year, but exporters say they have yet to benefit from it.

“We will raise this issue with the USTR high-ups in the meeting tomorrow [Tuesday],” said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

A delegation from the Office of the United States Trade Representative (USTR), led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, will visit Dhaka from May 5 to May 7.

In a statement issued ahead of the visit, the US Embassy in Dhaka said the United States looks forward to partnering on the implementation of the reciprocal trade agreement. The delegation is expected to discuss ways to strengthen trade and investment ties.

Under Article 5.3 of the reciprocal trade agreement, the United States commits to establishing a mechanism allowing certain textile and apparel goods from Bangladesh to enter the American market at a zero reciprocal tariff rate.

The deal says that a to be specified volume of apparel and textile imports from Bangladesh may qualify for the reduced rate. That volume will be determined in relation to the quantity of US-produced cotton and man-made fibre textile inputs exported to Bangladesh.

However, BGMEA President Khan said Bangladesh is not currently enjoying the benefits in the US market.

He said the zero-duty facility would be the main agenda at the scheduled meeting between the visiting officials and BGMEA leaders in Dhaka.

A senior commerce ministry official said the USTR delegation will also meet Commerce Minister Khandakar Abdul Muktadir at the secretariat today. Discussions are expected to cover the reciprocal trade deal, broader bilateral trade matters, labour rights and intellectual property.

The USTR is currently conducting two investigations covering 60 countries, including Bangladesh. One is about forced labour in industrial units, while the other relates to industrial overcapacity that could hurt the US manufacturers.

In a position paper submitted to the commerce ministry recently, BGMEA said the Bangladesh garment industry does not have overproduction capacity that could harm the American manufacturing sector and is free from forced labour, as exporters comply with internationally recognised labour laws.

The association said that in a market-driven economy, production levels constantly adjust to shifts in demand, input costs and supply chain conditions. Determining “excess capacity” without clear parameters or methodology is a major challenge.

According to USTR data, US goods trade with Bangladesh totalled an estimated $11.8 billion in 2025. US imports from Bangladesh stood at $9.5 billion, up 13.3 percent from 2024, while US exports to Bangladesh were $2.3 billion, up 1.4 percent.

The US goods trade deficit with Bangladesh was $7.1 billion in 2025, a 17.9 percent increase from the previous year.

Garments account for 86 percent of Bangladesh’s exports to the United States.

In its position paper, BGMEA said the Bangladesh apparel sector has not expanded suddenly or in a way that would indicate structural excess capacity. The industry growth should be viewed over the long term.

Over the past decade, the sector has followed a steady growth path, it said, driven by global demand and shifting sourcing strategies rather than policy-induced expansion.

After more than four decades of development, Bangladesh exported garment products worth $39.3 billion in fiscal year 2024-25, accounting for nearly 7 percent of the global apparel market. It is now the world’s second-largest garment exporter after China.

In 2025, Bangladesh accounted for 10.73 percent of US apparel imports by volume and 10.53 percent by value, according to the American Apparel and Footwear Association (AAFA).

This week, a separate USTR report said Bangladesh has stayed off the latest US intellectual property rights watch lists. However, Washington urged Dhaka to strengthen enforcement to prevent unfair trade practices.

In its annual Special 301 Report, the USTR identified 26 trading partners with concerns over intellectual property protection and enforcement.

State-owned companies listed on the stock market delivered mixed performances in the January-March quarter of the 2025-26 fiscal year, reflecting uneven sectoral health.

Quarterly public disclosures show energy firms, particularly oil marketing companies, remained profitable, while several entities in financial, gas and industrial sectors continued to incur losses, signalling structural weaknesses.

Oil firms maintain steady profits

The three listed oil marketing companies – Padma Oil Company, Meghna Petroleum and Jamuna Oil – remained profitable in the third quarter of the current fiscal year.

However, their revenues declined compared with the same period last year, reflecting weaker earnings from core operations. Non-operating income, however, played a significant role in sustaining overall profitability.

During the quarter, notable shifts were observed in cash positions and inventory management. Fluctuations in global fuel prices, import costs, stock management and cash flow dynamics were reflected in their financials.

Padma Oil posted a profit of Tk132.37 crore in the January-March quarter FY26, down from Tk145.38 crore in the same period in FY25. Its revenue fell to Tk85.43 crore from Tk92.30 crore.

Meghna Petroleum's profit dropped to Tk83.94 crore from Tk141 crore, while revenue declined to Tk22.95 crore from Tk28.02 crore.

The company said lower collections from customers and reduced payments to suppliers and employees significantly weakened cash flow from operations, leading to a sharp decline in net operating cash flow.

In contrast, Jamuna Oil recorded profit growth, earning Tk139.78 crore compared with Tk110.78 crore. However, its revenue declined to Tk52.12 crore from Tk70.41 crore.

The company in its disclosure said interest income on deposits with Sammilito Islami Bank was not recognised due to uncertainty over recovery. This reduced both total income and net profit, directly affecting earnings per share.

It added that a conservative accounting approach was adopted, excluding uncertain income, which resulted in lower reported EPS. The company also said reduced credit and accruals led to a decline in net operating cash flow per share compared with June 2025.

7 firms remain in red

The Investment Corporation of Bangladesh (ICB) continued to post heavy losses, reporting Tk277 crore in the quarter, up from Tk161 crore a year earlier. Notably, its revenue remained negative at Tk221 crore, compared with negative Tk63 crore in the same period last year.

Titas Gas Transmission and Distribution Company recorded a loss of Tk224 crore, slightly lower than Tk236 crore a year earlier. Its revenue declined to Tk8,613 crore from Tk9,023 crore.

Dhaka Electric Supply Company (Desco) managed to reduce its losses to Tk32 crore from Tk72 crore, while revenue edged up to Tk182.41 crore.

National Tubes Limited slipped into loss, posting Tk1.31 crore in losses against a profit of Tk1.43 crore a year earlier. Its revenue fell to Tk8.12 crore from Tk13.51 crore.

Eastern Cables Limited also remained in the red, reporting a loss of Tk3.45 crore, marginally lower than Tk3.58 crore a year earlier, although revenue rose slightly to Tk8.52 crore.

ICB's losses are seen as reflecting weak investor sentiment in the capital market. Meanwhile, continued losses at gas and power distribution firms also point to structural constraints, pricing issues and operational inefficiencies.

Signs of recovery in select firms

Power Grid Company of Bangladesh staged a strong turnaround, posting a profit of Tk94 crore, compared with a loss of Tk186 crore in the same period last year. Revenue rose to Tk715 crore.

The company said earnings per share increased by Tk6.58 year-on-year in the third quarter. It attributed the improvement to a significant rise in total income and a sharp reduction in overall expenses.

Bangladesh Submarine Cable Company Limited (BSCCL) also recorded robust growth, with profit rising to Tk74.43 crore from Tk47.82 crore a year earlier. Revenue increased to Tk125.31 crore.

The company said higher revenue from regular operations and increased other income drove the rise in earnings per share.

Eastern Lubricants Blenders Limited maintained its growth momentum, posting a profit of Tk4.28 crore, up from Tk1.57 crore a year earlier. Revenue climbed to Tk23.95 crore.

The improvement seen in companies such as Power Grid and BSCCL suggests that effective management, rising demand and supportive policies can enable state-owned enterprises to regain financial stability.

After the onset of the US-Israel war on Iran, some policymakers initially took a firm stance, publicly claiming credit for not adjusting fuel prices to shield consumers from global shocks. They argued that they did not want to pass the burden onto the people.

However, the government could not maintain its stance as it quickly unravelled under fiscal and market realities.

Within weeks, the government reversed course. It raised the price of a 12 kg liquefied petroleum gas (LPG) cylinder by 45 percent after two successive hikes in April.

On April 18, it also pushed fuel prices to record highs: diesel rose by Tk 15 per litre to Tk 115, octane by Tk 20 to Tk 140, petrol by Tk 19 to Tk 135, and kerosene by Tk 18 to Tk 130.

The scale and timing of these adjustments suggest that fiscal constraints, subsidy pressures, and external account vulnerabilities outweighed earlier political commitments.

From a macroeconomic perspective, such hikes drive costs and thus prices of commodities in the supply chain, as higher energy costs spread through transport, production, and supply chains, often creating second-round effects in import-dependent economies like Bangladesh.

A recent report on inflation dynamics of Bangladesh by the central bank showed gas price hikes have pushed up energy inflation to 14.9 percent during the January-March quarter of the current fiscal year 2025-26 from 14.4 percent in the previous quarter.

Economists say the effect of hiking petroleum prices is going to be felt soon, and consumers have already begun to feel the pinch. Transport costs for both passengers and freight have gone up. Farmers complained about the higher cost of harvesting rice and threshing the grains. Consumer goods companies are reducing pack sizes and squeezing margins to cope.

Yet, two ministers -- finance and commerce -- downplayed the inflationary risks.

According to a report published in this newspaper on April 20, Finance Minister Amir Khosru Mahmud Chowdhury said, “It may increase or it may not. If the supply side remains stable, then prices may not rise.”

In reply to a question in the parliament, Commerce Minister Khandakar Abdul Muktadir said it was unlikely that the recent fuel price hike would exacerbate inflation, terming the adjustment “moderate.”

He said the 15 percent increase in diesel prices may raise commodity prices by around Tk 0.30 per kg. However, he said this would not have any major impact on overall inflation, which has remained around 9 percent for more than three years, deepening consumers’ woes.

The wage rate index for unskilled workers illustrates this trend. Inflation has outpaced wage growth for 50 consecutive months, steadily eroding the purchasing power of consumers, particularly those in middle- and lower-income groups. It means that real wages have been in the negative for more than four years.

Consumers are set to face further pressure as the commerce ministry has allowed refiners to raise soybean oil prices by Tk 4 per litre, or 2 percent.

The situation worsened by earlier supply disruptions triggered by the Iran War, which had already pushed up global energy and transport costs. Diesel-dependent sectors such as agriculture, manufacturing, and transport are now under additional pressure, raising concerns that the increased costs will eventually be passed on to consumers in an already high-inflation economy.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said the recent fuel price hike is likely to ripple across the economy through a “multiplier effect.”

He noted that fuel acts as a “barometer of commodity prices,” meaning its increase will inevitably influence a wide range of goods, though not uniformly.

He explained that the current situation reflects “cost-push inflation,” driven by rising input costs rather than demand.

However, he cautioned against overstating the scale of the impact, emphasising that the extent of price increases will depend on how significant fuel costs are within each product’s overall cost structure.

“If fuel accounts for a portion of total costs, a 15 percent increase in fuel prices does not translate into a 15 percent rise in final prices,” he said, illustrating that the actual effect would be proportionally smaller.

Rahman stressed that while some level of price increase is unavoidable, the degree to which it affects consumers will depend heavily on market behaviour and oversight.

“The pass-through to retail prices depends significantly on market management,” he said, warning that unchecked responses, such as transport operators raising fares disproportionately, could worsen inflationary pressures.

He also underscored the growing importance of regulatory monitoring, particularly in sectors with administered pricing, and highlighted the need for stronger safeguards for vulnerable groups.

“For low-income people, even a small increase in prices creates significant hardship,” he said, adding that effective implementation of social safety measures will be critical to easing the burden.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, echoed similar concerns, warning that higher energy prices would inevitably feed into overall price levels.

“If energy and oil prices increase, our price levels will increase. This is almost inevitable,” he said. “There is a ‘one-to-one’ correspondence, as the transmission channel is very deep.”

He explained that a fuel price increase typically triggers broader inflationary pressures across the economy.

“When oil prices increase, we’ve seen a 15-20 percent increase across different varieties. It exerts pressure on other supply chain elements, which overall impacts our prices. They might be saying it for political reasons, but the economic reality is that this will fuel inflationary pressure further,” he added.

Razzaque also noted that the impact is more severe in Bangladesh compared to other countries due to already elevated inflation.

“It’s not just happening in Bangladesh; many countries have already increased their fuel prices. The problem for Bangladesh is that our baseline inflation rate was already high, hovering around 9 to 10 percent. When this impact is added, it creates even more pressure. In countries like Cambodia, where inflation was lower, it was easier to absorb. But for us, it’s almost inevitable that prices will go up,” he said.

He also raised concerns over inflation measurement, especially LPG pricing. He said the Bangladesh Bureau of Statistics (BBS) relies on government-set rates, which may not reflect market reality.

Razzaque added that official figures could be misleading if based on listed prices rather than what consumers actually pay, urging surveys of real market prices for more accurate inflation data.

Paramount Textile, a listed company on the bourses, reported a year-on-year revenue decline of more than 15% in the first nine months of the current fiscal year, according to its consolidated quarterly financial statements.

Despite a nosedive in revenue, the company posted a slight increase in profit to Tk96.81 crore, compared with Tk96.41 crore in the same period last fiscal year. However, earnings per share (EPS) slightly dipped to Tk5.14 from Tk5.22.

The company said its operating profit fell 14% amid the revenue contraction. Still, higher income from other sources and gains from associate companies helped offset the decline, enabling Paramount Textile to register a modest profit growth during the July–March period.

Its report showed that its profit from associates companies surged 250% to Tk36 crore while its other income jumped by 631% to Tk10.81 crore.

It has investment in associates' companies—Paramount BTrac Energy Ltd, a 200 MW HSD power plant and Dynamic sun energy Pvt Ltd, a joint venture company between Paramount Textile Ltd and Global energy project holdings (GEPH).

According to its financial report, in the third quarter during the January to March, its revenue fell by 30% to Tk245.71 crore, a lower from Tk354.01 crore in the same time of the previous fiscal year.

Despite 25% declining in its operating profit, net profit surged 6% to Tk52.65 crore mainly due to increase in share of profit of associates companies.

In the three months, it earned Tk15.79 crore from its associates.

In FY25, Parmount Textile made a profit of Tk116.06 crore with an EPS of TK6.48. It had paid a 12% cash dividend for its shareholders.

Paramount Textile's shares closed at Tk61.60 each today (4 May) at the Dhaka Stock Exchange (DSE), a 2.38% down from the previous trading session.

Bangladesh’s total public debt burden has crossed Tk 22 lakh crore by December 2025 with a growing reliance on domestic sources as the government looks to “insulate the economy from foreign currency risks”.

Of the total debt, Tk 3 lakh crore was borrowed during the interim government period, according to the finance ministry’s latest quarterly bulletin.

The bulletin states the public debt stood at Tk 18.9 lakh crore at the end of June 2024, just a month before the interim administration assumed power. The figure was Tk 13.44 lakh crore at the end of June 2022.

During the interim period, domestic debt rose by Tk 1.70 lakh crore, reaching Tk 12.5 lakh crore by December. Foreign loans increased by Tk 1.47 lakh crore to Tk 9.59 lakh crore in the same period.

Domestic borrowing dominates the government’s overall debt portfolio. As of December 31, 2025, the domestic and external liabilities constituted 57 percent and 43 percent of the total government debt stock, respectively.

“By focusing on the local market, the government is deepening domestic liquidity while reducing its exposure to exchange rate fluctuations,” said the bulletin.

During the July-December period of the current fiscal year, the government’s total borrowing rose by Tk 62,428 crore, or 13 percent, compared to the same period a year earlier.

During the period, loans from the foreign sector dropped by 59 percent to Tk 10,130 crore, while domestic borrowing surged 70 percent to Tk 52,298 crore.

Of the domestic borrowing, Tk 19,470 crore was borrowed from the central bank alone.

Most of the domestic loans were raised through government securities. “A key feature of the government’s approach was a clear shift toward long-term debt,” the finance ministry said.

Meanwhile, total interest payment during the July-December period rose by 22 percent to Tk 71,253 crore. Of these, interest payment for domestic borrowing stood at Tk 61,866 crore, a 25 percent surge from the same period a year ago.

While increased domestic borrowing often raises concerns about “crowding out,” the current landscape suggests a unique window of opportunity, said the ministry.

It argued that ample liquidity in stronger banks, falling yields on government securities, and subdued private-sector credit demand create conditions for sustainable domestic financing without crowding out private borrowers.

By leveraging this internal liquidity, the state is building a more resilient and self-reliant fiscal framework that maintains stability without straining the private credit market, it added.

The country's premier bourse returned to positive territory today as a wave of bargain hunting helped the benchmark index snap a two-session losing streak, although overall market capitalisation fell by Tk5,000 crore.

Despite lingering concerns over global geopolitical dynamics and domestic economic factors, opportunistic investors moved in to accumulate beaten-down scrips, particularly in the banking and manufacturing sectors.

The benchmark DSEX index of the Dhaka Stock Exchange rose by 12 points to settle at 5,277, while the blue-chip DS30 index followed suit, gaining 4 points to close at 2,023.

Market participation showed signs of improvement as total turnover at the DSE climbed by 6% to reach Tk877 crore compared to the previous session.

According to the daily market review by EBL Securities, the capital bourse staged a modest rebound supported by resilient investor participation. The market opened on a firm note with steady accumulation through the mid-session.

However, the upward momentum was somewhat tempered toward the end of the day as cautious selling from some quarters trimmed intraday gains.

Interestingly, while the key indices rose, the overall market capitalisation at the DSE dropped by Tk5,000 crore to settle at Tk6.81 lakh crore, a phenomenon largely attributed to the price adjustment of high-cap stocks.

On the sectoral front, the banking sector dominated market activity, accounting for 19.1% of the total turnover. This was followed by the engineering and pharmaceutical sectors, which contributed 12.5% and 12.4% to the day's volume, respectively.

In terms of returns, the ceramic sector led the gainers with a 3.1% increase, followed by jute at 2.9% and information technology at 1.5%. On the downside, the general insurance, mutual fund, and food sectors faced corrections, with general insurance declining by 1.0%.

The market breadth remained slightly in favour of the bulls, as 174 issues advanced compared to 159 that declined, while 63 remained unchanged.

Individual stock performance was highlighted by JMI Syringe and JMI Hospital, both of which surged by nearly 10% to lead the gainers' list.

On the other hand, City Bank emerged as the top loser of the day, shedding 13.33% of its value.

However, market analysts noted that this sharp decline was due to the technical adjustment of its share price following the record date for its 15% stock dividend declaration for the year 2025.

The positive sentiment was partially mirrored at the Chittagong Stock Exchange (CSE), where the CSCX index ended 6 points higher at 9,093. However, the CASPI edged down by 4 points to settle at 14,783.

Trading activity at the port city bourse saw a significant contraction, with turnover plunging by 59% to stand at a modest Tk16.77 crore.

Oil prices edged higher on Monday, supported by the absence of a US-Iran peace deal that kept supplies constrained and prices above $100 a barrel.

Brent crude futures were up 67 cents, or 0.6%, to $108.84 a barrel at 0400 GMT after settling down $2.23 on Friday. US West Texas Intermediate was up 65 cents, also 0.6%, at $102.59 a barrel, after a $3.13 loss on Friday.

"The broader market remains tightly supported by persistent supply disruptions and geopolitical uncertainty," said Priyanka Sachdeva, analyst at Phillip Nova.

"Unless there is a clear and sustained resolution that restores normal flows through the Strait of Hormuz, oil prices are likely to remain elevated, with risks still tilted toward further upside."

President Donald Trump said the US would begin efforts to assist ships stranded in the Strait of Hormuz, but prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.

Negotiations between the US and Iran continued over the weekend, with both sides assessing each other's responses.

Trump has made securing a nuclear deal with Tehran a priority, but Iran wants to defer nuclear talks until after the war and first lift rival blockades on Gulf shipping.

On Sunday, the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, said it would raise oil output targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.

The rise matches that agreed for May, minus the share of the United Arab Emirates, which left OPEC on May 1. However, the additional barrels are expected to remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.

Mobile operators have called on the National Board of Revenue (NBR) to withdraw value-added tax (VAT) on spectrum and spectrum-related fees, arguing the levy contradicts global norms and undermines investment in the sector.

In a recent letter sent to the NBR chairman, the Association of Mobile Telecom Operators of Bangladesh (AMTOB) described the proposed withdrawal as a vital step to rectify a fundamental misalignment in Bangladesh’s VAT regime.

The association said radio spectrum, the finite range of frequencies over which all wireless communication travels, is an intangible national resource administered by the Bangladesh Telecommunication Regulatory Commission (BTRC).

“Its [radio spectrum] assignment, renewal, and usage confer a sovereign regulatory right -- not a commercial supply of goods or services under any legal interpretation,” wrote Mohammad Zulfikar, the association’s secretary general.

Hence, imposing VAT on spectrum and spectrum fees, AMTOB argued, effectively turns a regulatory charge into a taxable transaction.

“Imposing VAT here transforms a non-commercial regulatory grant into an artificial taxable event,” it added.

According to the letter, telecom companies are required to pay VAT on spectrum fees without being able to claim input tax credits, increasing operational costs.

It said the BTRC’s lack of VAT registration prevents it from issuing standard invoices. “This renders the VAT non-creditable and traps it as a pure cost to the operators.”

AMTOB warned that the arrangement stifles network investment, 5G rollout, and rural coverage expansion.

It cited frameworks in the European Union, India, the United Kingdom, and Australia, where spectrum charges are treated as sovereign regulatory fees outside the VAT net.

“Bangladesh’s current approach deviates from this consensus, creating indefensible inefficiencies,” the letter said.

The association noted that the sector already carries a heavy tax burden -- corporate income tax, BTRC revenue sharing, spectrum and licence fees, and VAT on services.

“In 2024, we contributed approximately Tk 22,000 crore,” the letter noted, warning that additional non-creditable taxes could affect affordability and innovation in the sector.

In the letter, AMTOB placed two demands before the tax authority: the immediate withdrawal of VAT on spectrum-related payments, and formal clarification categorising these charges as sovereign regulatory fees outside the VAT net.

Shahed Alam, chief corporate and regulatory officer at Robi Axiata, said, “Treating spectrum fees as VAT-exempt regulatory charges, in alignment with global best practices, would restore tax neutrality, reduce financial pressure, and improve cost efficiency.”

An internal Bangladesh Bank (BB) document has revealed significant exposure of the country’s banking sector to high-risk of defaulted loans linked to six major business conglomerates.
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The confidential analysis highlights widespread vulnerabilities across multiple banks, raising concerns over asset quality and risk management in the financial sector.

The document, titled “Selected Lead Banks, Impacted by Six Groups”, categorises affected financial institutions based on their exposure to non-performing loans associated with six business groups. The groups or individuals identified are: Saifuzzaman Chowdhury, S Alam, Beximco, Sikdar, Nassa and Orion.

According to the data, Islami Bank Bangladesh PLC appears in five of the six exposure categories, indicating extensive involvement across multiple high-risk loan portfolios. Newly consolidated Sammilito Islami Bank PLC is listed under all six groups, suggesting that its balance sheet carries significant inherited non-performing assets from merged weak banks.

Other banks appearing frequently across the exposure lists include First Security Islami Bank, Social Islami Bank, Union Bank, Janata Bank, Rupali Bank, IFIC Bank, United Commercial Bank, AB Bank and Al-Arafah Islami Bank.

State-owned banks such as Sonali Bank and Agrani Bank are also shown to have notable exposure to defaulted loans linked to the identified groups.

In response to the rising systemic risk, Bangladesh Bank has initiated steps to assign selected institutions as “lead banks” to coordinate recovery efforts in collaboration with international firms.

The criteria for selecting lead banks reportedly prioritise institutions with prior experience in handling international non-disclosure agreements (NDAs), enabling them to manage complex negotiations and recovery processes.

The designated lead banks for each group are as follows:

Saifuzzaman Chowdhury group: United Commercial Bank PLC (lead), Islami Bank Bangladesh PLC, Al-Arafah Islami Bank PLC

S Alam group: Islami Bank Bangladesh PLC (lead), Janata Bank PLC, Sammilito Islami Bank PLC.

Beximco group: National Bank PLC (lead), Janata Bank PLC.

Sikdar group: IFIC Bank PLC (lead), Sammilito Islami Bank PLC, Agrani Bank PLC.

Nassa group: National Bank PLC (lead), IFIC Bank PLC, Al-Arafah Islami Bank PLC.

Orion group: United Commercial Bank PLC (lead), Agrani Bank PLC.

The document also states that banks undergoing or scheduled for merger will not be eligible to act as lead banks, reflecting ongoing policy considerations within Bangladesh Bank.

Officials said the move indicates a shift towards a more coordinated and externally supported recovery strategy aimed at addressing long-standing default loan problems in the banking sector.

Wondering whether you can find better investment returns than the US stock market without turning your portfolio into a guessing game?

Right now, you can.

Using the latest justETF country rankings from 3 May 2026, we found a clear group of overseas markets beating the S&P 500 on the 2026 return table. We have centred this page on eight that are practical for US readers who use country ETFs and broader international ETFs.

We will show you where the returns are, what is driving them, and how to think about the risk before you buy.

Which countries currently outperform US stock market?

If you want the short answer, several countries are ahead of the US stock market right now. On justETF's country table updated on 3 May 2026, the S&P 500 shows a 2026 return of 6.14% in euro terms, and each market below sits above that line.

That gives you a clean scoreboard, but it does not equal your exact dollar return in a US brokerage account. Currency moves, local market hours and the specific ETF you choose can all shift the result.

Use the 2026 column for the clearest "right now" comparison.
Use the 1-year figure to see whether the move has depth.
Check the ETF structure because an 81-stock fund behaves very differently from a 178-stock fund.

Market

2026 return

1-year return

Popular US-listed ETF

Quick read

United States

6.14%

25.41%

SPY

Your benchmark

South Korea

62.04%

65.39%

EWY

Huge momentum, heavy AI and semiconductor exposure

Taiwan

41.27%

38.78%

EWT

Strong chip-cycle exposure, higher valuation

Turkey

26.36%

24.53%

TUR

Strong gains, very uneven ride

Brazil

22.30%

27.98%

EWZ

Cheaper market, income support, cyclical risk

Mexico

10.46%

35.84%

EWW

Concentrated market tied closely to North America

Japan

9.56%

26.50%

EWJ

Broader market, lower volatility than most on this list

Poland

9.15%

33.26%

EPOL

Value and yield, but very concentrated

Canada

8.49%

34.80%

EWC

Familiar market structure, moderate risk

Quick takeaway: You do not need to chase only the hottest emerging markets. This list includes both high-octane moves, such as South Korea, and steadier developed markets, such as Japan and Canada, which gives you more than one way to diversify a global portfolio.

Why is South Korea a strong investment choice right now?

South Korea is the clear leader. It is up 62.04% for 2026 and 65.39% over one year on the justETF table, which is far ahead of the United States and even ahead of most other emerging markets.

In a March 2026 market note, iShares highlighted South Korea's role in AI infrastructure and semiconductor manufacturing, and its EWY fund gives you exposure to names such as Samsung, SK Hynix, Hyundai Motor and KB Financial.\

That is powerful if you want direct access to the hardware side of the AI revolution, but EWY held only 81 stocks on 1 May 2026 and showed a three-year standard deviation of 34.38%, so this is better used as a tactical position than as the centre of your portfolio.

Best fit: investors who want direct exposure to the AI supply chain.
Main risk: big swings, because this market can move much faster than the S&P 500.

What makes Taiwan's market returns attractive?

Taiwan sits in second place, with a 2026 return of 41.27% and a one-year return of 38.78%. If you want a market that benefits when global demand for advanced chips stays strong, Taiwan is one of the cleanest country ETF ideas you can buy.

The US-listed EWT fund held 85 stocks on 1 May 2026 and carried a five-star Morningstar rating as of 30 April 2026, which tells you the recent risk-adjusted record has been strong. The trade-off is price: its portfolio P/E stood at 26.52, so you are paying up for quality and momentum.

How is Turkey delivering better investment returns?

Turkey is up 26.36% for 2026 on the justETF ranking, which keeps it comfortably ahead of the US. That makes it one of the strongest momentum markets on this page.

The diversification case is real, too. TUR showed a three-year beta of 0.30, so it has not simply copied the path of US stocks, yet its three-year standard deviation was still 26.90%, which tells you the ride can be rough.

Why it can help: it can add a return stream that behaves differently from a US-heavy portfolio.
Why it can hurt: local volatility and currency risk can wipe out gains very quickly.

Why consider investing in Brazil at present?

Brazil's 2026 return stands at 22.30%, with a 27.98% one-year gain and a 46.41% three-year return. For readers who want emerging markets exposure without paying growth-stock multiples, Brazil deserves a serious look.

EWZ held 46 stocks on 1 May 2026, carried a portfolio P/E of 11.43 and had a trailing yield of 4.32%. In simple terms, you are buying a cheaper market with meaningful income, but you are also taking on heavy exposure to banks, commodities and the domestic cycle.

Why does Mexico belong on this list?

Mexico is not in the top four, yet it still beats the US stock market with a 10.46% gain on the justETF table. I like it for readers who want foreign exposure that still feels closely linked to North American manufacturing and consumer demand.

EWW had 40 holdings on 1 May 2026, a 0.50% expense ratio and a four-star Morningstar rating, while its one-year total return was 53.20% as of 31 March 2026. That is appealing if you want a tighter, more focused country fund and you can handle the concentration.

Best fit: investors who want international exposure without moving too far from the US economic orbit.
Watch out for: a narrow stock base, because 40 holdings can magnify sector moves.

What factors make Japan a calmer winner?

Japan offers a different kind of outperformance. The 2026 return is 9.56%, which is far less dramatic than South Korea, but it still tops the US and does so with a broader market base.

EWJ held 178 stocks on 1 May 2026, its three-year standard deviation was 13.13%, and its expense ratio was 0.49%. If you want developed markets exposure that does not lean so hard on one story, Japan is one of the steadier country ETFs on this list. If currency swings worry you, HEWJ is the hedged version, though the fee is higher.

Why is Poland worth a closer look?

Poland has a 2026 return of 9.15% and a one-year return of 33.26%, so it clearly earns a place here. It can suit investors who want European exposure without defaulting to larger benchmarks such as Germany, France or the United Kingdom.

EPOL is a focused fund, with just 33 holdings, a portfolio P/E of 12.10 and a trailing yield of 4.67% on 1 May 2026. That combination can look attractive if you like value and income, but each major holding has a lot of influence over your result.

What stands out: one of the stronger yields in this group.
Main risk: concentration, because 33 holdings leave little room to hide.

How does Canada round out the list?

Canada closes the eight-country shortlist with an 8.49% 2026 return and a 34.80% one-year gain. For many US investors, it is the easiest international market to hold because the market structure feels familiar and the risk is easier to read.

EWC held 84 stocks on 1 May 2026, had a three-year standard deviation of 14.20% and charged 0.50%. That makes Canada a useful middle ground: more diversified than Brazil or Poland, less volatile than South Korea or Turkey, and still ahead of the US stock market in 2026.

How should you use these markets in a portfolio?

You do not need eight country ETFs in one account. In a March 2026 update, iShares said flows into single-country ETFs had already exceeded the total for all of 2025, led by South Korea and Brazil, which shows real investor interest, but interest and good portfolio design are not the same thing.

A simpler investment strategy usually works better. Use broad international ETFs for the core of your global portfolio, then add a country ETF only when you have a clear reason for it.

Use VXUS or IXUS as a base if you want broad developed markets and emerging markets exposure outside the United States.
Add one country ETF for a clear theme, such as South Korea for AI hardware or Japan for a steadier developed-market tilt.
Keep currency in mind, because the justETF scoreboard is in euros while your brokerage account is in dollars.
Check concentration before you buy, because a 33-stock fund is a very different risk from a 178-stock fund.

Final words

The US stock market still deserves a core place in most portfolios, but it is not leading every race right now. On the latest justETF ranking, South Korea, Taiwan, Turkey, Brazil, Mexico, Japan, Poland and Canada all offer better investment returns than the US stock market on the 2026 table.

If you want to act on that, keep it simple: use international ETFs for your base, add country ETFs only when the case is clear, and respect currency and concentration risk. That is how you stay diversified without turning your global portfolio into a pile of hot trades.

FAQs
1. Which countries beat the US stock market right now?

Poland, Canada, Greece, South Africa, Austria, Italy, the Netherlands, and the United Kingdom are showing higher returns than the US market at the moment.
2. Why are these places doing well now?

Some have cheap stocks, some have strong exports, and some ride a rebound in demand, for example Spain and New Zealand have tourism gains, Peru sees commodity lifts, and Israel shows tech strength.
3. Are emerging markets like Colombia, Chile, Indonesia, or Pakistan worth the risk?

They can pay off, but they move fast, and volatility is high, so only add them if you can take sharp swings; Norway also pops up for its oil and safe balance sheet.
4. Who has pointed this out, and is this a deep crash like the great depression?

Analysts such as Steven Cress have flagged the trend, and no, this is not a new great depression, it is a market shift, short of a long, deep slump in broad economies; Sweden and Switzerland show calm in parts of Europe.
5. How should I act on this news?

Think funds or ETFs that cover Poland, Canada or the others, spread risk, set a time plan, and check local rules; if you want safety, mix in blue chips from Italy or Austria, and keep an eye on news.