The Hong Kong and Shanghai Banking Corporation (HSBC) Limited has projected that Bangladesh’s economy will grow at a rate of 5.9% in the upcoming fiscal year, with further acceleration expected in FY2025-26.
The bank anticipates a rebound in the economy, predicting a growth rate of 6.3% for the fiscal year 2026, as revealed in the HSBC Economic Outlook recently unveiled in Dhaka.
Frederic Neumann, Chief Asia Economist and Co-Head of Global Research Asia at HSBC, presented the report’s key findings during a discussion on ‘HSBC Economic Outlook: A Perspective of Bangladesh’ held on May 12.
According to Neumann, the average incremental GDP in Bangladesh over the next four years will exceed US$60 billion, surpassing the projected incremental GDP of several other Asian economies.
The Bangladesh government is setting a GDP growth target of 6.75% for FY2025, indicating an optimistic outlook for the nation’s economic future.
Neumann highlighted that the anticipated growth acceleration should be driven by increased household spending and enhanced purchasing power, which are expected to improve amid easing inflation pressures.
Neumann emphasized the importance of capitalizing on foreign direct investment (FDI) inflows, as Asia is poised to attract significant FDI. He noted that remittances will likely rebound due to a better global economic outlook, further supporting domestic consumption.
Additionally, investment spending is expected to increase, particularly among exporters benefiting from the improving global trade cycle.
During the event, Neumann presented a Global Economic Policy Uncertainty Index, which graphically illustrated the global uncertainties faced in recent years, especially during the pandemic.
Despite these challenges, he noted that Bangladesh has shown resilience and is well-positioned for future growth, driven by fiscal and structural reforms.
Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister, attended the event as the chief guest. Dr. Rubana Huq, Managing Director of Mohammadi Group and Vice-Chancellor of Asian University for Women, and Zaved Akhtar, Chairman and Managing Director of Unilever Bangladesh and President of the Foreign Investors’ Chamber of Commerce and Industry (FICCI), were among the key speakers.
HSBC Bangladesh’s CEO, Md Mahbub ur Rahman, expressed confidence in the country’s economic trajectory, citing the skilled workforce, rising domestic demand, and rebounding remittances as key drivers of progress.
The panel discussion also highlighted Bangladesh’s positive developments and opportunities despite the existing challenges.
Over 200 clients and stakeholders participated in the event, including representatives from embassies, regulators, and government officials. Gerard Haughey, Country Head of Wholesale Banking at HSBC Bangladesh, was also present.
