Bangladesh economy to grow by 6.4pc this fiscal: WB

PBC News:  The Bangladesh economy is expected to grow by 6.4 per cent in the current 2021-22 fiscal year, while 6.9 percent in the 2022-23 fiscal, the World Bank projected.

The World Bank has made the projection in its ‘Global Economic Prospects’ report.

As per the World Bank estimate, the GDP growth was 5 per cent in the last 2020-21 fiscal, reports UNB.

The World Bank report said South Asia’s economy rebounded in the second half of the year following a massive second wave of Covid-19 in mid-2021. “An improvement in domestic demand and resumption of exports contributed to strong growth in Bangladesh,” it says.

Bangladesh’s GDP is expected to reach 6.4 percent in FY2021/22 ending June 2022, and 6.9 per cent in FY2022/23, due to growing services activity and firming exports of readymade garments.

The consumer inflation in major economies of the region has been above central banks’ targets since late 2019.

The World Bank report says the pandemic, and the emergence of the Omicron variant, could hinder economic activity by requiring additional mobility restrictions and undermining external demand.

It adds that risks to the outlook remain to the downside, while another risk stems from financing conditions.

Further upward price pressures may cause inflation expectations to become unanchored, worsening domestic financing conditions, eroding real incomes, and weakening the financial sector.

Climate risks are becoming more prevalent in South Asia as cyclones, floods, and droughts have become more frequent and as the costs of such events have increased.

The region is one of the most vulnerable to climate-induced increases in poverty, disease, child mortality and food prices.

The report states that the growth prospects have improved since June 2021, largely because of better prospects in Bangladesh, India, and Pakistan.