PHOTO:
PRABIR DAS
STAR BUSINESS REPORT
Bangladesh is among the countries experiencing significant population outflows, alongside India, Mexico, Russia, Syria, China, Pakistan and Ukraine, as people seek better opportunities and escape security concerns, according to the Mastercard Economics Institute (MEI) annual economic outlook for 2025.
Global remittances surged from $128 billion in 2000 to $857 billion in 2023, with projected growth of 3 percent in 2024 and 2025, according to the World Bank.
South Asia remains a key beneficiary, with remittances contributing over 6 percent to Sri Lanka’s gross domestic product (GDP) and 5 percent to Bangladesh’s GDP. MEI forecasted continued growth for the Asia-Pacific region in 2025, mirroring 2024 levels with easing inflation and interest rates offering relief to households.
This aligns with global economic growth projections of 3.2 percent in 2025, up slightly from 3.1 percent in 2024. Labour markets in the Asia-Pacific are expected to remain tight, with inflation-adjusted wage increases boosting consumer spending on big-ticket items, such as electronics and appliances.
However, the MEI cautioned that geopolitical and monetary policy decisions—like potential US tariffs or Japan’s interest rate hikes—could influence growth trajectories.
Travel in the region is set to recover further, though mid-2024 passenger numbers were still 12 percent below 2019 levels, primarily due to sluggish outbound travel from the Chinese Mainland and Japan.
“If 2024 was about ‘getting back to normal,’ 2025 is about normalisation,” said David Mann, chief economist for Asia Pacific at the MEI.
Migrant workers form a queue outside Hazrat Shahjalal International Airport in Dhaka to check in for their flights. Remittance sent home by migrants accounts for around 5 percent of Bangladesh’s economy, according to a Mastercard report. The photo was taken recently.