HSBC forecasts over 6.5pc GDP growth

Bangladeshi GDP will grow by more than 6.5 per cent in 2015 and 2016 helped by accommodative monetary policy and expansionary fiscal policy, according to a forecast by UK-based banking giant HSBC.
The HSBC Trade Forecast report also expects exports to average growth of 10.6 per cent from 2017-20, helped by infrastructure development, currency competitiveness in Europe, and trade liberalisation.
The report expected 7 per cent GDP growth in 2014/15 (to end-June 2015) and it grew stronger than expected mark. It is now forecasting full year growth of close to 7 per cent for 2015 and 2016.
It said expansionary fiscal policy, improving business sentiment, reasonable growth in overseas remittances and continued trade liberalisation would help activity maintain solid momentum in coming years.
The HSBC Trade Forecast report shows Bangladesh has recorded the highest Trade Confidence Score HSBC’s survey of twenty five countries with respondents particularly positive about the outlook for trade volumes, trade with Europe and buoyed by lower costs for logistics and materials and higher profit margins.
In Bangladesh, public investment into transport and energy infrastructure has risen notably in recent years and this would help attract more foreign direct investment (FDI), encouraging more export diversification. But Bangladesh will also maintain the strong foothold it has the global market for textiles and garments, said the report.
Although textiles and garments account for more than 80 per cent of the country’s total export, the future is not just in clothing for Bangladesh. Seven out of the eight different goods sectors are set to grow at a double digit pace from 2016-20; the only one growing slower is likely to be agriculture, which largely reflects the economy upgrading.
According to the report, clothing and apparel is Bangladesh’s biggest export sector, and the forecast expects it to contribute three quarters of the increase in exports from 2021-30.

HSBC forecasts over 6.5pc GDP growth

Bangladeshi GDP will grow by more than 6.5 per cent in 2015 and 2016 helped by accommodative monetary policy and expansionary fiscal policy, according to a forecast by UK-based banking giant HSBC. The HSBC Trade Forecast report also expects exports to average growth of 10.6 per cent from 2017-20, helped by infrastructure development, currency competitiveness in Europe, and trade liberalisation. The report expected 7 per cent GDP growth in 2014/15 (to end-June 2015) and it grew stronger than expected mark. It is now forecasting full year growth of close to 7 per cent for 2015 and 2016. It said expansionary fiscal policy, improving business sentiment, reasonable growth in overseas remittances and continued trade liberalisation would help activity maintain solid momentum in coming years. The HSBC Trade Forecast report shows Bangladesh has recorded the highest Trade Confidence Score HSBCs survey of twenty five countries with respondents particularly positive about the outlook for trade volumes, trade with Europe and buoyed by lower costs for logistics and materials and higher profit margins. In Bangladesh, public investment into transport and energy infrastructure has risen notably in recent years and this would help attract more foreign direct investment (FDI), encouraging more export diversification. But Bangladesh will also maintain the strong foothold it has the global market for textiles and garments, said the report. Although textiles and garments account for more than 80 per cent of the countrys total export, the future is not just in clothing for Bangladesh. Seven out of the eight different goods sectors are set to grow at a double digit pace from 2016-20; the only one growing slower is likely to be agriculture, which largely reflects the economy upgrading. According to the report, clothing and apparel is Bangladeshs biggest export sector, and the forecast expects it to contribute three quarters of the increase in exports from 2021-30.