Co-head of Asian Economics Research, HSBC, Frederic Neumann said Bangladesh stands to benefit from its strong economic fundamentals and will likely continue to deliver steady growth rates as global growth recovers in the coming quarters.
“Bangladesh continues to impress with economic resilience. Strong growth in recent years was based on solid fundamentals, with stable inflation and a robust external payments position,” said Frederic Neumann.Co-head of Asian Economics Research made the comments at a virtual session for HSBC Bangladesh clients and stakeholders titled ‘Impact of COVID-19 on the Bangladesh economy and silver linings’ on Tuesday.
Bangladesh exports have also gained global market share in recent years and the continued rise in remittance has helped to support local demand, Neumann continued.
While talking about the impact of COVID-19, Neumann went on to explain that Bangladesh’s economy has so far managed the challenges brought by the global COVID-19 outbreak well.
Exports in particular have suffered amid a global decline in apparel demand, and remittances have cooled, the fall in oil prices and slowing imports have kept the country’s trade position in a resilient position, said a press release quoting Co-head of Asian Economics Research .
Locally, consumer spending has softened due to a softer labour market and the need for social distancing. However, the government has delivered a robust response to support demand, supported by an accommodative central bank, he added.
Robert Chatterton Dickson, British High Commissioner to Bangladesh attended the session as the chief guest and Ahmed Jamal, Deputy Governor, Bangladesh Bank attended the event as a special guest.Md. Mahbub ur Rahman, CEO, HSBC Bangladesh was also in attendance alongside key members of the business community, regulatory bodies and representatives from state-owned enterprises.
Commenting on the event, Robert Chatterton Dickson said Bangladesh has been one of the great economic success stories of the last decade. The key question now is how the country recovers from the COVID-19 pandemic, and sets itself on a renewed path of sustainable, inclusive private sector-led growth.
“I hope that the insights shared by the experts at HSBC, one of the leading UK-based investors in Bangladesh, will help Bangladeshi businesses and entrepreneurs to emerge stronger from these complex challenges,” added Robert Dickson.
Ahmed Jamal said termed the situation as an unprecedented for all and Bangladesh entered this situation with strong macroeconomic fundamentals.
“The central bank has worked to provide adequate policy support. Bangladeshi people are known for our resilience and together we will navigate this tumultuous time,” added Ahmed Jalal.
A sustainable and timely recovery from this turbulence warrants deeper collaboration among all stakeholders. It is said that the sun rises even after the darkest night, Md. Mahbub ur Rahman said.