The Asian Development Bank (ADB) said, it expects gross domestic product (GDP) of the country to grow by 4.5% in fiscal year 2020 and by 7.5% in 2021.
ADB made this growth forecast in its latest report of Asian Development Outlook (ADO) 2020 Supplement on Thursday, reports UNB.
For the effect of the coronavirus pandemic in Bangladesh the growth forecast for FY2020 reflects a sharp decrease in economic activities in the last quarter.
However, the report expects country’s economy to recover in fiscal year 2021.
During FY2021, GDP growth rate is expected to pick up to 7.5%, driven by gradual recovery in the first two quarters, followed by quick recovery in the following quarters, reports Dhaka Tribune.
These forecasts considering the impacts of the government’s containment actions and fiscal and monetary stimulus measures, rest on the assumption that it might take three months for the economy to start normalizing after the outbreak goes past its peak.
“After a robust performance in the first nine months of FY2020, Bangladesh’s economy would slow down in the short term due to Covid-19 pandemic but is likely to recover in FY2021,” said Country Director Manmohan Parkash.
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“Managing the pandemic is a priority and the FY2021 forecast depends on how the recovery shapes up in the coming months,” he said.
Parkash said that proactive initiatives to attract investments, creating local employment opportunities, and providing easier access to finance for farmers, entrepreneurs, and small businesses could help the economy to start advanced.
“ADB has so far provided $600 million in loans and $1.4 million in grants for managing health emergencies and mitigating the initial socio-economic impacts of the pandemic,” he added.
“ADB in FY2021 will continue its strong support to help Bangladesh economy recover and rebound from the impacts of Covid-19,” said Parkash.
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