Bangladesh’s growth may accelerate to 6.7 per cent this year, making it one of the world’s fastest-growing economies. Export growth is likely to become stronger as the year goes on, as global demand picks up and manufacturers continue to look at Bangladesh as a cheap alternative location for their factories.

The country boasts of a large and youthful population, as well as relatively low labor costs. As the world’s large emerging markets falter, frontier economies like Bangladesh and Vietnam are holding steady. Bangladesh’s increasing market share in the European Union and recovering US demand shield it from China’s slowdown, while better demographics offer it an edge over other Asian nations.

Per capita income rose past $1,000 in 2015 and hopes are that it will rise fourfold by 2021. Exports contribute about 20 per cent to Bangladesh’s gross domestic product. Garments account for about 80 per cent of overseas shipments and two-thirds of these go to the US and the European Union.

However, there are looming dangers. Competition from Vietnam means Bangladesh has to diversify from cheap garments. There is a prolonged slowdown in the European Union which buys 61 per cent of Bangladeshi garments. And implementation of the Trans-Pacific Partnership would threaten the US market, which purchases 20 per cent of Bangladesh’s textile exports.