As global growth recovers in the coming quarters, Bangladesh stands to benefit from its strong economic fundamentals and will likely continue to deliver steady growth rates, says Frederic Neumann, co-head of Asian Economics Research at HSBC.
He shared his insights at a virtual session titled "Impact of Covid-19 on the Bangladesh Economy and Silver Linings" for HSBC Bangladesh clients and stakeholders on Tuesday, said a press release.
Neumann also talked about the impact of Covid-19 on the global as well as regional economy.
In his presentation, Neumann also said, “Bangladesh continues to impress with economic resilience. Strong growth in recent years was based on solid fundamentals, with stable inflation and a robust external payments position. Bangladesh exports have also gained global market share in recent years and the continued rise in remittance has helped to support local demand.”
“While exports in particular have suffered amid a global decline in apparel demand, and remittances have cooled, the fall in oil prices and slowing imports has kept the country’s trade position in a resilient position. Locally, consumer spending has softened due to a softer labour market and the need for social distancing. However, the government has delivered a robust response to support demand, supported by an accommodative central bank," Neumann went on to explain.
The British High Commissioner to Bangladesh Robert Chatterton Dickson attended as chief guest, while deputy governor of the Bangladesh Bank Ahmed Jamal was special guest.
Md Mahbub ur Rahman, CEO of HSBC Bangladesh, was also present along with key members of the business community, regulatory bodies and representatives from state-owned enterprises.
Dickson said, “The key question now is how Bangladesh recovers from the Covid-19 pandemic, and sets itself on a renewed path of sustainable, inclusive private sector-led growth. I hope that the insights shared by the experts at HSBC, one of the leading UK-based investors in Bangladesh, will help Bangladeshi businesses and entrepreneurs to emerge stronger from these complex challenges.”
“Bangladesh entered this situation with strong macroeconomic fundamentals. The central bank has worked to provide adequate policy support. Bangladeshi people are known for our resilience and together we will navigate this tumultuous time," said the Bangladesh Bank deputy governor Ahmed Jamal.
“A sustainable and timely recovery from this turbulence warrants deeper collaboration among all stakeholders. We will come out stronger and better from this unprecedented situation,” said HSBC Bangladesh CEO Md Mahbub ur Rahman.
Frederic Neumann joined HSBC in 2006 and is based in Hong Kong.
Before joining HSBC in 2006, Frederic was an adjunct professor at a number of US universities, including Johns Hopkins University, teaching graduate courses on Asian sovereign risk analysis, financial markets, monetary policy, and Southeast Asian political culture.
