Bangladesh resilient, growth to pick up gradually: HSBC

Bangladesh has remained resilient despite recent economic challenges, and growth is expected to stabilise in the coming years, said Frederic Neumann, chief Asia economist at HSBC.

The multinational bank expects Bangladesh’s gross domestic product (GDP) growth to reach about 5 percent in 2026 and 5.5 percent in the following year, supported by improving macroeconomic conditions, he said while virtually delivering the keynote presentation at an HSBC Bangladesh event on economic prospects for Bangladesh and the world at Sheraton Dhaka yesterday.

Neumann also noted that the country’s export earnings are projected to grow by 4.1 percent in 2026, while remittance inflows continue to rise year-on-year amid increasing confidence in formal money transfer channels. Combined with easing inflation, this trend is expected to support private consumption.

He added that investment by domestic and foreign businesses could gradually recover following the recent general election, although stronger momentum would depend on restoring investor confidence through improved law and order and policy stability.

Highlighting Bangladesh’s upcoming graduation from least developed country (LDC) status in November 2026, the economist stressed the need to enhance export competitiveness through expanded market access, better governance, and improved infrastructure.

He also cautioned that slowing global consumer demand, partly linked to US tariffs, remains a key external risk for Bangladesh’s economy.

Accelerating trade negotiations with the European Union, the country’s largest garment export market, is therefore increasingly important, he added.

Jignesh Ruparel, chief financial officer of HSBC Bangladesh, presented the bank’s latest global financial results at the event, underscoring HSBC’s role in facilitating international trade through its network spanning 56 countries and territories.

Md Kausar Alam, president of the Institute of Cost and Management Accountants of Bangladesh, said the country’s economy holds strong long-term potential, driven by favourable demographics and a resilient private sector that remains the primary catalyst in the country’s pursuit of a trillion-dollar economy by 2040.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, noted that initiatives such as the bank’s CFO Connect platform aim to help finance professionals exchange insights and better navigate an evolving global economic landscape.

With the formation of the new government following a largely peaceful election, the government now holds a clear political mandate and legitimacy to pursue reforms and provide the stability the population has been seeking.

Facing an extensive agenda, the new administration must demonstrate commitment to its promises and address the aspirations of Bangladesh’s young generation.

“The reset begins,” he added.