HSBC urges Dhaka to bank on opportunity arising out of FDI into Asia

18 May '24

1 min read

HSBC urges Dhaka to bank on opportunity arising out of FDI into Asia

Pic: Adobe Stock

Insights

Frederic Neumann, chief Asia economist at HSBC, recently urged Bangladesh to capitalise on the opportunity arising out of the near-record high FDI flowing into Asia.
HSBC expects the country's GDP growth to be 5.9 per cent in the fiscal starting July 1, and 6.3 per cent in the fiscal thereafter, backed by household spending and better purchasing power.

Bangladesh should capitalise on the opportunity arising out of the near-record high foreign direct investment (FDI) flowing into Asia, according to Frederic Neumann, chief Asia economist and co-head of Global Research Asia at HSBC.

HSBC expects the country’s gross domestic product (GDP) growth to be 5.9 per cent in the fiscal starting July 1 this year, and 6.3 per cent in the fiscal thereafter.

The average incremental GDP of the country in the next four years will be over $60 billion, which is more than the predicted incremental GDP of many other Asian peers, Neumann told an event in Dhaka to discuss ‘HSBC Economic Outlook: a Perspective on Bangladesh’.

The acceleration in growth should be supported by household spending and improving purchasing power amid easing inflation pressures, he was cited as saying by domestic media reports.

Remittances are expected to rebound as well, driven by an improving global outlook, helping to further support consumption. Investment spending, too, is expected to pick up, led by exporters who are benefitting from the improving global trade cycle, he added.

Fibre2Fashion News Desk (DS)

More Textiles News - Bangladesh...