Bangladesh’s economy is projected to grow by 7.1% in fiscal year 2025-26, driven by strong exports and remittances, according to an HSBC Global Research report. Despite global economic challenges, both sectors are showing positive trends. During a recent HSBC webinar, Frederic Neumann, chief Asia economist at HSBC, noted that while the GDP growth forecast for 2024-25 was revised to 4.5%, it is expected to rise significantly the following year.
The garment industry, which represents 83% of Bangladesh’s exports, is set to benefit from increased international demand. Additionally, the easing of global energy prices has stabilized imports, reflecting a recovery in domestic demand. Remittances are expected to grow as employment conditions improve in key overseas markets, supporting household consumption and broader economic recovery.
However, inflation remains a significant challenge, affecting both household spending and business costs. Neumann emphasized the need for structural reforms in the banking sector and inflation control to unlock Bangladesh’s full economic potential and ensure sustainable growth.
HSBC officials, including Md Mahbub ur Rahman, CEO of HSBC Bangladesh, and Gerard Haughey, head of wholesale banking, noted that recent macroeconomic adjustments and robust fundamentals are setting the stage for a strong recovery. The rapid implementation of reforms could further accelerate this growth.
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