BSS, Dhaka :
HSBC predicted steady growth of Bangladesh economy for at least 15 more years till 2030, fetching more from exports, attracting more foreign direct investment (FDI) and improving workplace safety.
The UK-based bank in a country report for May said that the country would continue to grow robustly over the medium term as trade prospects are bright, particularly in the textiles sector, and trade liberalization efforts with its neighbours in Asia should boost prospects further, encouraging more diversification of the export base.
It said Bangladesh has made good progress towards greater macro-economic stability in recent years, which would attract more FDI inflows in large scale.
“Bangladesh has made good progress towards liberalizing trade flows with its neighbours in recent years and this should help it maintain its competitive advantage in clothing and apparel, as well as encouraging diversification into other higher value sectors such as electronics”, the bank said.
The bank said that the investor confidence in the textile sector would also be supported by the recent Accord on Fire and Building Safety, a five-year agreement between textile retailers to set minimum standards in Bangladesh’s textiles sector.
According to HSBC, US remains Bangladesh’s largest export partner, accounting for around 15% of total exports in 2013 (a position it is expected to retain out to 2030) despite suspension of the Generalised System of Preferences (GSP).
“Nevertheless, investor confidence should benefit from the introduction of a number of new safety laws for textile factories. Indeed, trade between Bangladesh and the US will be further boosted if these new laws encourage the US to reinstate the trade preferences scheme”, the bank said.
The bank also said that India and China would also be fast growing export markets for Bangladesh, with exports to India growing by 18.0 percent a year from 2015-20, assisted by the South Asia free trade agreement which first came into force in 2006.
HSBC predicted steady growth of Bangladesh economy for at least 15 more years till 2030, fetching more from exports, attracting more foreign direct investment (FDI) and improving workplace safety.
The UK-based bank in a country report for May said that the country would continue to grow robustly over the medium term as trade prospects are bright, particularly in the textiles sector, and trade liberalization efforts with its neighbours in Asia should boost prospects further, encouraging more diversification of the export base.
It said Bangladesh has made good progress towards greater macro-economic stability in recent years, which would attract more FDI inflows in large scale.
“Bangladesh has made good progress towards liberalizing trade flows with its neighbours in recent years and this should help it maintain its competitive advantage in clothing and apparel, as well as encouraging diversification into other higher value sectors such as electronics”, the bank said.
The bank said that the investor confidence in the textile sector would also be supported by the recent Accord on Fire and Building Safety, a five-year agreement between textile retailers to set minimum standards in Bangladesh’s textiles sector.
According to HSBC, US remains Bangladesh’s largest export partner, accounting for around 15% of total exports in 2013 (a position it is expected to retain out to 2030) despite suspension of the Generalised System of Preferences (GSP).
“Nevertheless, investor confidence should benefit from the introduction of a number of new safety laws for textile factories. Indeed, trade between Bangladesh and the US will be further boosted if these new laws encourage the US to reinstate the trade preferences scheme”, the bank said.
The bank also said that India and China would also be fast growing export markets for Bangladesh, with exports to India growing by 18.0 percent a year from 2015-20, assisted by the South Asia free trade agreement which first came into force in 2006.
