18 C
Dhaka
Monday, December 9, 2024

Bangladesh economy starts recovering from pandemic: ADB

  • BSS
Image: Collected

Bangladesh economy has started recovering from the pandemic as prudent macroeconomic management and speedy implementation of the government stimulus measures are key imperatives to ensure the projected recovery of its economy, said the Asian Development Bank (ADB).

“Bangladesh economy has started recovering from the pandemic. Despite significant pressure on the health and pandemic management systems, the government has managed the economy well with appropriate economic stimulus and social protection measures, ensuring basic services and commodities for the poor and vulnerable,” said ADB Country Director Manmohan Parkash.

Recent economic performance in exports and remittances, and government’s macroeconomic management including securing foreign funds for economic stimulus and social protection have made this recovery feasible, he said.

The ADB in its Asian Development Outlook (ADO) 2020 Update released yesterday also said Bangladesh’s gross domestic product (GDP) is expected to grow by 6.8 percent in fiscal year (FY) 2021.

The growth reflects gradual recovery, supported by a strong manufacturing base and strengthening of growth in export destinations.

Inflation is expected to moderate to 5.5 percent and current account deficit to narrow to 1.1 percent of GDP in FY2021, the report projected.

The ADB said the main risk to this growth projection is a prolonged pandemic in Bangladesh or its export destinations.

Parkash said, “We are encouraged by the increase in exports and remittances, and hope the recovery will be sustained, which will help in achieving the projected growth rate,”

“Early access to vaccine and continued emphasis on health pandemic management can help sustain this recovery,” he added.

The ADB country director said this crisis is an opportunity to undertake further reforms in resource mobilization, export diversification, employment generation, skills development, as well as social protection; and ADB is working with the government in these areas to provide further support.

ADB has already provided initial assistance of $600 million in loans and $4.4 million in grants for managing socio-economic impacts of the COVID-19 pandemic and supporting quick recovery. ADB has programmed $5.9 billion firm and $5.2 billion standby assistance for Bangladesh in 2021-2023.

In FY2021, the government’s fiscal and monetary stimulus measures are expected to boost public and private investment, the report said.

The central bank’s expansionary and accommodative monetary policy is expected to aid the projected growth while keeping inflation contained, it said, adding that strong remittances will stimulate private consumption.

Inflation is expected to stay at 5.5 percent in FY2021 reflecting a good crop outlook and favorable international commodity prices. Consumer caution and underutilized production capacity should mitigate any upward pressure on prices from the government’s fiscal and monetary stimulus measures.

In its 47-year-long partnership with Bangladesh, ADB has mobilized over $36.6 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 49 projects with around $11 billion.

Related Articles

Global Mediklaud to provide cloud-based Hospital ERP solution for Apollo Clinic, Dhanmondi, Dhaka

0
Dhaka, 27 October 2024: Global Mediklaud (BD) Limited has entered into an agreement with Apollo Clinic, Dhanmondi, Dhaka, under JMI Specialized Hospital, to implement...
U.S Embassy Applauds Journalist Safety Training

U.S. Embassy Applauds Journalist National Election Safety Training

0
Recognizing the crucial role of journalists in the upcoming national elections, the Edward M. Kennedy (EMK) Center partnered with the Bangladeshi Journalists in International...
Hola Browser

Hola gives the people of Bangladesh free access to a world of online content...

0
– The Hola Browser, a browser which includes a built-in 100% free peer-to-peer virtual private network (VPN), this week officially launched in Bangladesh,...
Universal College Bangladesh UCB

UoL degrees with London School of Economics’ academic direction, now at Universal College Bangladesh!

0
With the aim of providing world-class affordable education in Bangladesh, Universal College Bangladesh (UCB), the first Ministry of Education approved international education provider...
Bangladesh-MBA-Association

Bangladesh MBA Association (BMBAA) holds its 10th AGM and Election of Central Executive Committee...

0
Dhaka September 24, 2022: Bangladesh MBA Association (BMBAA) held its 10th Annual General Meeting today at IBA Auditorium, Institute of Business Administration (IBA), University...
Salman Khan-Being Human Clothing

Salman Khan’s ‘Being Human Clothing launching’ in Dhaka

0
Dhaka, 13 September 2022: Bollywood superstar Salman Khan owned clothing brand ‘Being Human Clothing’ launches its first outlet at Banani, Dhaka on the 15th...