Bangladesh’s gross domestic product (GDP) is expected to grow by 6.8 per cent in fiscal year 2022, according to the latest Asian Development Outlook 2021 released today by the Asian Development Bank (ADB).
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 per cent and current account deficit to narrow to 0.6 per cent of GDP in fiscal year 2022. However, FY22’s growth is expected to remain below pre-pandemic levels, the ADB said.
The main risk is re-escalation of coronavirus infection rates in Bangladesh or major advanced economies, clipping domestic and external demand.
“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 Manmohan Parkash, country director of the ADB.
“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 mobilisation will further accelerate the recovery process.”
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.”
