Bangladesh continues strong recovery from pandemic: ADB
DHAKA, Sept 22, 2021 (BSS) - Bangladesh's gross domestic product (GDP) is
expected to grow by 6.8 percent in current fiscal year (FY22), an Asian
Development Bank (ADB) report said.
The report titled "Asian Development Outlook (ADO) 2021 Update" released
today said the growth projection reflects a strong recovery supported by
strengthening manufacturing, continued expansion in the global economy and
effective government recovery policies.
Inflation is expected to slightly edge up to 5.8 percent and current
account deficit to narrow to 0.6 percent of GDP in FY2022. However, FY2022
growth is expected to remain below pre-pandemic levels.
The main risk is re-escalation of coronavirus disease (COVID-19) infection
rates in Bangladesh or major advanced economies, clipping domestic and
external demand, the report said.
"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 Country Director Manmohan Parkash.
"Prudent macroeconomic management, and efficient implementation of
stimulus measures and social protection programs have helped. Continued
efforts for job creation, quick vaccination, and improving domestic resource
mobilization will further accelerate the recovery process," he added.
Appreciating recent initiatives in the areas of financial inclusion, and
expanding social protection, Parkash added, "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 FY2022, improving consumer confidence and the government's fiscal and
monetary stimulus measures are expected to boost private and public
The central bank's expansionary and accommodative monetary policy is
expected to support the projected growth while keeping inflation contained,
the report added.
Strong remittances will stimulate private consumption.
Inflation is expected to edge up to 5.8 percent in FY2022 reflecting
recovery in economic activity.
Continued implementation of the increased fiscal and monetary stimulus
measures is expected to create inflationary pressures.
A good crop outlook, consumer caution and underutilized production
capacity should mitigate any upward pressure on prices. Domestic administered
prices for fuel may cushion the impact of increased crude oil prices.
ADB has reoriented its program priorities in Bangladesh emphasizing health
and social protection, skills and rural development, water and sanitation,
and the finance sector since the onset of the COVID-19 pandemic in early
Projects, programs, and technical assistance worth over $1.8 billion have
been approved for social protection, job creation, vaccine procurement, and
emergency management of the COVID-19 pandemic.
In its 48-year-long partnership with Bangladesh, ADB has mobilized over
$44 billion in loans and grants, including cofinancing, to help bring better
infrastructure, public services, and social development outcomes to the
people of Bangladesh.
ADB's current sovereign portfolio in Bangladesh has 51 projects with
around $12 billion.