Friday, 29 Mar, 2024

National

Bangladesh’s GDP to grow by 6.8pc in FY21: ADB

Senior Correspondent | banglanews24.com
Update: 2020-09-15 19:53:06
Bangladesh’s GDP to grow by 6.8pc in FY21: ADB

The economy of Bangladesh is showing signs of early recovery from the fallout of Coronavirus pandemic and its gross domestic product (GDP) is expected to grow by 6.8 percent in 2021 fiscal year, says a latest report of Asian Development Bank (ADB) report.

However, according to government projection the GDP is expected to grow by 6.2 percent.

Asian Development Outlook (ADO) 2020 Update was released on Tuesday.

The growth reflects gradual recovery, supported by a strong manufacturing base and strengthening of growth in export destinations. Inflation is expected to remain moderate to 5.5 percent and current account deficit to narrow to 1.1 percent of GDP in FY2021, said the report. 

ADB said prudent macroeconomic management and speedy implementation of government’s stimulus measures are key imperatives to ensure the projected recovery but noted that the main risk to this growth projection is a prolonged coronavirus (Covid-19) pandemic in Bangladesh or its export destinations.

“Bangladesh economy has started recovering from the pandemic. Despite significant pressure on the health and pandemic management systems, the government has managed the economy well with appropriate economic stimulus and social protection measures, ensuring basic services and commodities for the poor and vulnerable,” said Country Director Manmohan Parkash.

He said the recent economic performance in exports and remittances, and government’s macroeconomic management including securing foreign funds for economic stimulus and social protection have made this recovery feasible.

ADB has already provided initial assistance of $600 million in loans and $4.4 million in grants for managing socio-economic impacts of the Covid-19 pandemic and supporting quick recovery. ADB has programmed $5.9 billion firm and $5.2 billion standby assistance for Bangladesh in 2021-2023.

BDST: 1950 HRS, SEP 15, 2020
AP/SMS

All rights reserved. Sale, redistribution or reproduction of information/photos/illustrations/video/audio contents on this website in any form without prior permission from banglanews24.com are strictly prohibited and liable to legal action.