Tuesday, 26th October, 2021
Tuesday, 26th October, 2021

Bangladesh’s economic recovery will continue: ADB

The Asian Development Bank (ADB) in its Asian Development Outlook Supplement of July said Bangladesh’s economic recovery will continue amid the second wave of Covid-19 much like the previous fiscal year depending on exports and remittances.

ADB today released the supplement on the Asian economy from Manila.

It said the impact of the second wave could lead to 8.9 percent GDP growth of South Asia in 2021, which was 9.5 percent in last April.

This reduced GDP growth of Asia in the complementary outlook is largely due to the slowdown in India’s GDP growth.

In the outlook supplement, the growth prospects of other South Asian countries, including Bangladesh, have been kept the same as in April.

In April, outlook predicted a growth rate of 6.8 percent in Bangladesh. However, when the report was released on April 26, ADB Country Director for Bangladesh Manmohan Prakash said that it could be 5.5 to 6 percent.

In last June, the ADB said the GDP growth could reach 6.1 percent in 2021.

The ADB today said in the first 11 months of the last fiscal year, exports increased by 13.6 percent and remittances increased by 39.5 percent. On the other hand, revenue has increased by 12.9 percent in the first 10 months.

The ADO supplement said new waves of infections prompt a lower growth forecast of 8.9 percent for 2021 in South Asia, followed by growth at 7.0 percent in 2022. India’s 2021 growth projection is downgraded from 11.0 percent in April to 10.0 percent followed by 7.5 percent growth in 2022.

Recovery is under way in developing Asia, but with the growth projection for this year revised down slightly from 7.3 percent in Asian Development Outlook 2021 in April to 7.2 percent following renewed virus outbreaks in some economies. The projection for 2022 is upgraded from 5.3 percent to 5.4 percent.

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