Bangladesh's outlook remains bright: HSBC

The Hongkong and Shanghai Banking Corporation (HSBC) Limited expects Bangladesh's GDP growth to be 5.9% for this coming fiscal year, and 6.3% for the fiscal year thereafter. 

The bank disclosed the forecast in a recent event titled "HSBC Economic Outlook: A Perspective on Bangladesh" highlighting the latest global and Asian market developments and sharing a perspective on Bangladesh. 

The event, held on 12 May, featured a keynote presentation by Frederic Neumann, Chief Asia Economist and Co-Head of Global Research Asia, HSBC where he shared insights on the latest macroeconomic outlook, according to a press release.

Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister, attended as the chief guest. 

Dr Rubana Huq, Managing Director, Mohammadi Group and Vice-Chancellor, Asian University for Women, and Zaved Akhtar, Chairman and Managing Director, Unilever Bangladesh and President, Foreign Investors' Chamber of Commerce and Industry (FICCI) were the key speakers at the event. 

The event was also attended by Md Mahbub ur Rahman, Chief Executive Officer, HSBC Bangladesh and Gerard Haughey, Country Head of Wholesale Banking, HSBC Bangladesh, said the release.

During the keynote presentation, Frederic Neumann highlighted the near-record high foreign direct investments flowing into Asia and stressed the need for Bangladesh to capitalise on this opportunity. HSBC expects Bangladesh's GDP growth of 5.9% for this coming fiscal year, and 6.3% for fiscal year thereafter. 

The average incremental GDP in the next four years will be over $60 Billion which is more than the predicted incremental GDP of many other Asian peers. The acceleration in growth should be supported by household spending and improving purchasing power amid easing inflation pressures. Meanwhile, remittances are expected to rebound as well, driven by an improving global outlook, helping to further support consumption. Investment spending, too, is expected to pick up, led by exporters who are benefitting from the improving global trade cycle, Frederic added

He presented a Global Economic Policy Uncertainty Index that graphically represented the global uncertainties over the years. The index peaking during the pandemic posed multifaceted challenges which Bangladesh emerged with resilience. Despite these headwinds, the outlook for Bangladesh remains bright, with growth expected to improve further as fiscal and structural reforms gain traction. An interactive question and answer session followed which opened the floor for further elaboration on the subject matter.

The forum also facilitated a panel discussion consisting of Salman F Rahman,Frederic Neumann, , Dr Rubana Huq, Zaved Akhtar and moderated by Md Mahbub ur Rahman. The panel's multi-industry experience allowed for a deeper discussion on the growth prospects and strategies for advancing Bangladesh economy.

During his presentation, Frederic Neumann added, ''Bangladesh is well positioned to thrive in the coming years, building on its growing competitiveness, especially for ready-made garments. Meanwhile, easing inflation pressures should support household spending, giving the economy an extra boost."

The panel discussion acknowledged the challenges for Bangladesh while highlighting positive developments and areas of opportunity.