Bangladesh economy shows early signs of recovery, GDP to grow at 6.8% for FY 2021: ADB

16 Sep 2020 11:41 AM
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The Bangladesh economy is showing early signs of recovery with Gross Domestic Product (GDP) likely to grow at 6.8 percent in the fiscal year 2021.

Inflation is expected to moderate to 5.5 percent and current account deficit will probably narrow to at least one 1.1 percent of GDP in FY 2021.

Asian Development Bank (ADB) in its latest report Asian Development Outlook 2020 released on Tuesday says that Bangladesh's economy has started dealing with the pandemic. 

It remarked that prudent macroeconomic management and speedy implementation of the government stimulus measures are key imperatives to ensure the projected recovery. The report cautioned that the primary risk to this growth projection is a prolonged pandemic in Bangladesh or its export destinations.

ADB Country Director Manmohan Parkash said that recent economical performance in exports and remittances, and government’s macroeconomic management including securing foreign funds for economical stimulus and social protection measures have made this recovery feasible. 

He said that the crisis has an opportunity for Bangladesh to attempt further reforms in resource mobilization, export diversification, employment generation, skills development, and social protection.

ADB has provided a short assistance of USD 600 million in loans and USD 4.4 million in grants for managing socio-economic impacts of the COVID-19 pandemic and supporting quick recovery.

It has programmed USD 5.9 billion firm and USD 5.2 billion standby assistance for Bangladesh in 2021-2023.