Bangladesh will attain 6.8pc GDP growth this fiscal: ADB
On the other hand, the ADB says that inflation is expected to slightly edge up to 5.8 per cent in FY2022 and current account deficit to narrow down to 0.6 per cent of GDP in the fiscal 2022. Continued implementation of the increased fiscal and monetary stimulus measures is expected to create inflationary pressures.
However, growth is expected to remain below pre-pandemic levels, as per the ADO 2021 report.
The main risk is the re-escalation of Covid infections in Bangladesh or major advanced economies, clipping domestic and external demand, cautions the global lender.
“The government’s policies for saving lives, while protecting livelihoods underpinned the recovery process in Bangladesh, making it one of the few countries in the world sustaining commendable economic growth in recent difficult times,” said ADB Country Director Manmohan Prakash.
Prakash said prudent macroeconomic management, and efficient implementation of stimulus measures and social protection programmes have helped. “Continued efforts for job creation, quick vaccination, and improving domestic resource mobilization will further accelerate the recovery process.”
Appreciating recent initiatives in the areas of financial inclusion, and expanding social protection, Prakash said, “Sustained reforms to increase business competitiveness, foreign investment, export diversification, skills development, and technology adoption will stimulate private sector investments and hasten economic recovery.”
In FY22, improving consumer confidence and the government’s fiscal and monetary stimulus measures are expected to boost private and public investment.
