Frederic Neumann, Chief Asia Economist and Co-Head of Global Research Asia at the Hongkong and Shanghai Banking Corporation (HSBC) Limited, noted that recent macroeconomic adjustments and strong economic fundamentals will open the door for growth to revive Bangladesh’s economy over the next year.
“Bangladesh is already well on its way to recovery. Macroeconomic adjustments undertaken in recent months, and robust economic fundamentals, should pave the way for growth to rebound over the coming year. A rapid implementation of reforms would help to speed up the process further,” he said.
This was stated by Frederic Neumann during a recent HSBC Bangladesh-organized webcast on economic outlook entitled “Navigating Bangladesh’s Crossroads.”
The webinar covered recent events in the Asian and global markets as well as shared viewpoints on Bangladesh.
Frederic Neumann, the keynote speaker, offered his thoughts on the most recent macroeconomic forecast.
Although Bangladesh’s GDP growth rate has been lowered to 4.5 percent for FY2024–25, according to Neumann’s analysis of the most recent HSBC Global Research report on the country, “Regaining balance – Bangladesh looks to recovery,” the nation will rise to 7.1 percent the following year.
This growth will be largely driven by exports and remittances, both of which are showing positive signs despite the ongoing challenges in the global economy, he added.
Neumann emphasized that growth in the garment industry is anticipated due to demand from overseas markets, which accounts for 83 percent of the nation’s exports.
He also noted that imports, which had been impacted by increased energy costs globally, are now stabilizing as a result of a rise in domestic demand and a reduction in cost constraints.
He added that better job prospects in important international markets are expected to fuel remittance growth.
According to him, this increase in remittances will not only boost household consumption but also be crucial to maintaining the overall economic recovery.
Neumann did point out that despite these encouraging signs, there are still difficulties, especially in light of 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, HSBC Bangladesh and Gerard Haughey, Country Head of Wholesale Banking, HSBC Bangladesh.
Almost 300 clients and stakeholders were also in attendance at the virtual event.
