Bangladesh to be $500bn economy by 2026: Top StanChart economists

Bangladesh’s GDP to grow over 7 percent in the next five years and this growth should drive the country’s economy up to $500 billion and per capita income to $3,000 by fiscal year 2026, said researchers at Standard Chartered Bank recently.

They said GDP growth will recover in fiscal 2021-22 riding on domestic consumption and a rebound in global growth.

The bank’s global research team was speaking at a media session held following the 2021 Bangladesh session of the Bank’s Global Research Briefing series. MA Mannan, planning minister graced the event as chief guest. Around 300 of the bank’s clients joined via video conferencing at the virtual event.

Eric Robertsen, global head of research and chief strategist of Standard Chartered, 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.”

A robust vaccination program and implementation of strategic infrastructure projects are expected to further increase the momentum towards the nation’s LDC graduation, he said.

Saurav Anand, economist, South Asia of Standard Chartered, said, Bangladesh’s economy is set to accelerate after a speed bump, with GDP growth forecast at 5.5% in FY21 and 7.2% 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,” Anand said.

Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh, said the government of Bangladesh has navigated the internal and external challenges of the pandemic remarkably well.

“The resilience of the 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 will continue to spur private investment and FDI, said Bijoy.

The planning minister said: “The people of Bangladesh, the government and our business community have once again demonstrated our tremendous resilience to ensure that while our shared development journey might have slowed, 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,” Mannan said.

Standard Chartered’s Global Research Briefing, led by the Bank’s Global Research Team, is one of the Bank’s flagship annual events. The program agenda includes sessions on the global economic outlook, Bangladesh outlook, and global forex movements. This year, the findings were presented by Eric Robertsen.

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.