Bangladesh to become $500b economy by 2026: StanChart

Bangladesh will continue to grow at over 7 per cent in the next four fiscal years, which could turn it into a $500 billion economy with a per capita GDP of $3,000 by FY26, said Standard Chartered’s Global Research Team.

At a media session following the 2021 Bangladesh session of the Bank’s Global Research Briefing series on Thursday, the team members lauded Bangladesh as a compelling growth story, despite the global pandemic.

Planning Minister MA Mannan attended the event as the chief guest, while around 300 of the bank’s clients joined via video conferencing during the virtual event, said a press release.

“Bangladesh’s economy is set to accelerate after a speed bump, with GDP growth forecast at 5.5 per cent in FY21 and 7.2 per cent in FY22. The momentum will be driven by an export demand recovery, strong remittance inflows and public investment. Policy support is a prerequisite for a smooth transition to middle-income status, with per capita GDP set to reach $3,000 by FY26,” said Saurav Anand, Standard Chartered’s economist for South Asia. 

This year’s research findings follow on from forecasts presented during the 2020 round of the bank’s Global Research Briefing, when researchers remained optimistic about the growth prospects of Bangladesh, even at the height of the pandemic.

Eric Robertsen, Standard Chartered’s global head of research and chief strategist, said, “While the pace and distribution of global recovery remains highly uneven, Bangladesh has made a strong comeback with one of the highest GDP growths in the world in 2020.” 

He added that a robust vaccination programme and implementation of strategic infrastructure projects are expected to further increase momentum towards the nation’s LDC graduation.

Planning Minister Mannan said, “The people of Bangladesh, including the government and our business community, have once again demonstrated our tremendous resilience, ensuring that our shared development journey might have slowed, though it has not been halted.” 

“We remain as committed as ever in fostering a business-friendly climate so that we can continue on our journey of inclusive progress and prosperity,” he added.

Standard Chartered Bangladesh’s Chief Executive Officer Naser Ezaz Bijoy said, “The government of Bangladesh has navigated the internal and external challenges of the pandemic remarkably well. The resilience of Bangladesh economy gives us cause for optimism. As the vaccination drive continues, the economy is set to accelerate, while lower debt levels compared to its peers provide a medium-term fiscal runway for growth.” 

He said there are significant opportunities for productivity gains through technology adoption, technology inclusiveness through mobile-based solutions and the ITES sector, while growth-supportive policies focus sectors will continue to spur private investment and FDI.