An event titled “HSBC Economic Outlook: A Perspective on Bangladesh” was organized on Sunday by the Hongkong and Shanghai Banking Corporation (HSBC) Limited in Bangladesh. The event featured a discussion of the most recent developments in the Asian and global markets as well as an overview of Bangladesh.
The prime minister’s advisor on private industry and investments, Salman F. Rahman, was the program’s principal guest.
Frederic Neumann, Chief Asia Economist and Co-Head of Global Research Asia, HSBC, gave a keynote address at the event and provided views on the most recent macroeconomic forecast.
Keynote speakers at the event included Zaved Akhtar, Chairman and Managing Director of Unilever Bangladesh and President of the Foreign Investors’ Chamber of Commerce and Industry (FICCI), and Dr. Rubana Huq, Managing Director of the Mohammadi Group and Vice-Chancellor of the Asian University for Women.
Md. Mahbub ur Rahman, Chief Executive Officer of HSBC Bangladesh, and Gerard Haughey, Country Head of Wholesale Banking, also attended the function.
Attendees at the event included approximately 200 clients and stakeholders, regulators, government officials, and representatives from embassies.
In his keynote address, Frederic Neumann emphasized that Bangladesh must seize this chance given the almost unprecedented level of foreign direct investments currently streaming into Asia. Bangladesh’s GDP is expected to rise by 5.9% in the upcoming fiscal year and 6.3% in the following fiscal year, according to HSBC. According to Frederic, the average incremental GDP over the next four years will exceed US$60 billion, surpassing the incremental GDP forecasts of most other Asian counterparts.
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.
Fred 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 the panel discussion, 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 mobilisation, modernising the tax collection system with wider tax net and, diversification of exports.”
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.”
During the event, 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. We are encouraged by the positive signs in Bangladesh’s economy, and we remain committed to supporting the country’s growth. .”
In this context, Gerard Haughey continued, “It is critical to be up to date with market dynamics due to the constantly changing macroeconomic and geopolitical environments. At HSBC, we’re dedicated to giving our clients the tools they need to proactively seize new business opportunities with accuracy and foresight by offering priceless Global Research insights from our award-winning staff.”
The panel discussion highlighted promising trends and areas of opportunity while acknowledging Bangladesh’s problems.
