The Chief Asia Economist and Co-Head of Global Research Asia at HSBC Limited Frederic Neumann said that recent macroeconomic adjustments and strong economic fundamentals are set to facilitate a rebound in Bangladesh’s economy over the coming year.
Bangladesh is already well on its way to recovery. The macroeconomic adjustments undertaken recently, combined with strong economic fundamentals, should facilitate a growth rebound in the year ahead. Rapid implementation of reforms would further accelerate this process, he said.
Neumann made these comments during an economic outlook webinar titled ‘Navigating Bangladesh’s Crossroads’, which was organised by HSBC Bangladesh.
The webinar focused on recent global and Asian market developments while sharing insights on Bangladesh’s economic landscape.
Based on the latest HSBC global research report on Bangladesh, titled ‘Regaining Balance – Bangladesh Looks to Recovery’, Neumann noted that although Bangladesh’s GDP growth rate has been revised to 4.5 per cent for FY2024-25, the country is projected to rebound to 7.1 per cent in the subsequent year.
This growth is expected to be largely driven by exports and remittances, both of which are showing positive signs despite ongoing challenges in the global economy.
Neumann highlighted that the garment sector, which accounts for 83 per cent of the country’s exports, is expected to grow in response to increased demand from international markets.
He also pointed out that imports, previously strained by rising global energy prices, are now stabilising, reflecting a recovery in domestic demand and easing cost pressures.
He mentioned that remittances are anticipated to rise, driven by improved employment conditions in key overseas markets.
This increase in remittances will not only support household consumption but will also play a significant role in sustaining broader economic recovery, he added.
However, Neumann cautioned that challenges remain, particularly concerning inflation.
‘This will continue to affect both household spending and business costs. Structural reforms in the banking sector and efforts to control inflation will be essential for unlocking Bangladesh’s full economic potential and ensuring long-term, sustainable growth,’ he added.
The event was also attended by Md Mahbub ur Rahman, Chief Executive Officer of HSBC Bangladesh, and Gerard Haughey, Country Head of Wholesale Banking at HSBC Bangladesh.
Nearly 300 clients and stakeholders participated in the virtual event.