Bangladesh`s GDP growth will be 6.8pc this fiscal: ADB...

Dhaka, Tuesday   19 October 2021

Bangladesh`s GDP growth will be 6.8pc this fiscal: ADB

 Economy Desk

 Published: 04:33 PM, 22 September 2021   Updated: 05:05 PM, 22 September 2021

Bangladesh`s GDP growth will be 6.8pc this fiscal: ADB

Bangladesh`s GDP growth will be 6.8pc this fiscal: ADB

Bangladesh's GDP grew by 5.47 percent last fiscal year 2020-21 despite the coronavirus outbreak. The government has projected gross domestic product (GDP) growth of more than 7 percent in the current fiscal year 2021-22 due to the revival of the industrial and export sectors. Considering the country's overall economy, the Asian Development Bank has revised Bangladesh's GDP growth for the current fiscal year. 

In its latest report, ADB has pegged that Bangladesh's GDP growth will be 6.8 percent by the end of the current fiscal year.

The growth projection for the current fiscal reflects a strong recovery supported by strengthening manufacturing, continued expansion in the global economy, and effective government recovery policies, the ADB said.

On the other hand, inflation is expected to slightly edge up to 5.8 percent and current account deficit to narrow down to .6 percent of the GDP in the financial year (FY) 2022.

The coronavirus epidemic is currently the main challenge of GDP growth and economic development, the report added.

In a statement, ADB Country Director Manmohan Prakash said government policies to save lives have affected the recovery process in Bangladesh, one of the few countries in the world to have maintained commendable economic growth in recent difficult times. The prudent macroeconomic management, stimulus measures and efficient implementation of social security programs have helped Bangladesh to survive in this situation.

He added that continued efforts to create jobs, provide quick vaccinations, and improve internal resource mobilization would further accelerate the recovery process.

Manmohan Prakash said Bangladesh's recent initiatives to expand financial inclusion and social security were commendable. Continuing reforms to boost business competition, foreign investment, export diversification, skills development, and technology adoption will stimulate private sector investment and accelerate economic recovery.

ADB has restructured its program priorities in Bangladesh, the statement said. Emphasis is placed on health and social protection, skills and rural development, water and sanitation, and finance. Since the outbreak of the Covid-19 epidemic in early 2020, 1.8 billion has been approved for social security, employment, vaccine procurement, and emergency management.