Bangladesh

HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.

Exports and domestic demand fuel Bangladesh’s economic boom

Bangladesh is one of the world’s fastest growing economies. GDP has nearly tripled in the last decade1 and continues to grow at around 8% per annum2, driven by strong domestic demand, private consumption and exports3. The market has benefited from trans-Pacific trade tensions by boosting exports to both China and the US, although it is not insulated from softening global demand4.

State of play

Everyone’s a winner with robust growth

Bangladeshi businesses are brimming with confidence, reflecting the booming economy. Almost every company (97%) is projecting growth in the next year, with half (50%) classed as high-growth firms that are expecting to grow by 15% or more – and this is more than double the global average (22%).

On a five-year horizon this dynamism is expected to continue, with 52% of Bangladeshi firms also expecting growth of 15% or more. In keeping with this trend, almost three quarters (74%) of companies expect their business to change totally or substantially over the same period, compared to just half of their global peers.

Bangladeshi businesses believe international trade is a force for good, with many confident that it will drive innovation (94%) and improve efficiency (92%).

97 %

Bangladeshi businesses are brimming with confidence, reflecting the booming economy. Almost every company (97%) is projecting growth in the next year

Expectations for future business growth

Expect sales to grow – Next year*
97%
Grow by 15% or more – Next year
50%
Grow by 6-14% – Next year
33%
Grow by 5% or less – Next year
13%
Stay the same – Next year
3%
Expect sales to shrink – Next year
0%

Next five years

Expect sales to grow*

98%

Grow by 15% or more

52%

Grow by 6-14%

34%

Grow by 5% or less

11%

Stay the same

2%

Expect sales to shrink

o%

*This is the sum of grow by 5% or less, 6-14%, 15% or more.

What you need to know

  1. 1

    97% of Bangladeshi businesses expect to grow next year, while 50% predict growth of 15% or more.

  2. 2

    77% of Bangladeshi companies think a favourable political climate is a key driver for growth, compared with just 20% of firms surveyed globally.

  3. 3

    74% of Bangladeshi companies are more confident than a year ago, compared to just 43% of their Asia-Pacific (APAC) peers.

What your business can do

  • Optimise working capital and secure finance to drive trade growth. Around half of Bangladeshi businesses think this is important.
  • Expand into new markets to counter business threats in existing markets. This is a preferred strategy for 48% of Bangladeshi companies.