HSBC and ADB Forecast Modest Growth for Bangladesh

The Asian Development Bank (ADB) and HSBC have released economic forecasts for Bangladesh's 2026-27 fiscal year, both predicting growth significantly lower than the government's official target of 6.5 percent. The ADB forecasts GDP growth at 4.5 percent, while HSBC projects a 4.4 percent increase, following a 4.14 percent growth rate in FY26.

Both institutions cite economic resilience driven by steady services activity and strong remittance inflows. HSBC attributes the projected growth to easing global headwinds, such as lower oil prices and a stabilizing outlook for US tariffs, as well as domestic reforms aimed at increasing private investment. However, the ADB warns that inflation will likely reach 8.8 percent, exceeding the government's 7.5 percent target due to high energy, transport, and food costs.

In response to these challenges, Finance and Planning Minister Amir Khosru Mahmud Chowdhury stated that the government is focusing on reducing bureaucracy, strengthening institutions, and diversifying exports beyond the readymade garment sector to improve global competitiveness and restore macroeconomic stability.