Bangladesh to be a $500b economy by 2026: StanChart economists
Bangladesh's gross domestic product (GDP) will grow at over 7 per cent in fiscal year 2022 and it will continue growing at the rate, making the country a $500-billion economy by fiscal year 2026, top economists of Standard Chartered said.
Despite the global pandemic, Bangladesh remains a compelling growth story and the per capita income of the country is all set to hit $3,000 by fiscal year 2026, they said.
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.
"The people of Bangladesh, the government and our business community has once again demonstrated our tremendous resilience to ensure that while our shared development journey might have slowed, it has not been halted," Planning Minister MA Mannan said at the event as the chief guest.
"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," said Eric Robertsen, global head of research and chief strategist at Standard Chartered.
"A robust vaccination programme and implementation of strategic infrastructure projects are expected to further increase momentum towards the nation's LDC graduation."
"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," said Saurav Anand, the bank's economist for south Asia.
"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."
"The government of Bangladesh has navigated the internal and external challenges of the pandemic remarkably well," said Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh.
"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 medium term fiscal runway for growth."
Around 300 of the bank's clients joined via video conferencing during the virtual event, the bank said in a statement today.