Experts at a discussion on May 12 said that Bangladesh's outlook remained bright, despite its ongoing challenges.
The Hongkong and Shanghai Banking Corporation (HSBC) Limited in Bangladesh organized an 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 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.
Salman F Rahman, MP, private industry and investment adviser to the prime minister, attended as chief guest.
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, CEO, HSBC Bangladesh and Gerard Haughey, country head of wholesale banking, HSBC Bangladesh.
During the keynote presentation, Frederic Neumann highlighted the near-record high foreign direct investments flowing into Asia and stressed the need for Bangladesh to capitalize 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, he also said.
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, Neumann further stated.
Bangladesh is well positioned to thrive in the coming years, building on its growing competitiveness, especially for RMG. Meanwhile, easing inflation pressures should support household spending, he added.
Fred also 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.
Salman F Rahman said: “Despite doing well internally, economic repercussions arising out of external factors have posed challenges for the country, including declining forex reserves and the appreciation of the dollar against the taka. We need to focus on domestic revenue mobilization, modernizing the tax collection system with wider tax net and, diversification of exports.”
Md Mahbub ur Rahman added: "As the world economy is on a gradual recovery, in Bangladesh, empowered by our skilled workforce, fueled by the surge in domestic demand, and buoyed by the rebounding remittances, our trajectory towards progress remains unwavering."
