Economic Growth

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Bangladesh's growth to be 6.8 percent at end of current FY: ADB

The forecast is based on strong manufacturing strengths, continued expansion in the global economy and effective recovery policies of the government.

According to the forecast, at the end of the financial year, inflation may increase slightly to 5.8 percent, GDP deficit will be 0.6 percent. It has also been identified as the biggest risk in situations arising out of the coronavirus pandemic.

In a statement, ADB Country Director Manmohan Prakash said the government's policies to save lives in livelihoods have affected Bangladesh's economic recovery process, which has been commendable in the recent difficult times. Bangladesh is one of the few countries in the world to maintain economic growth at this difficult time. The prudent macroeconomic management, incentives and efficient implementation of social security programs have helped Bangladesh to survive in this situation.

He added that continued efforts to create jobs, speedy vaccinations and improvements in internal resource mobilization would further accelerate the recovery process.

Manmohan Prakash said the recent initiatives to expand financial inclusion and social security were commendable. Business competition, foreign investment, export diversification, skills development will stimulate private sector investment and accelerate economic recovery.

"ADB has restructured its program priorities in Bangladesh," the statement said. "Emphasis is being placed on health and social protection, skills and rural development, water and sanitation, and finance. Since the outbreak of the Covid-19 epidemic in early 2020, USD 1.8 billion has been approved for social security, employment, vaccine procurement and emergency management."