ADB projects 6.8 pct growth for Bangladesh in fiscal year 2021 as economy shows recovery signs
Bangladesh's gross domestic product (GDP) is expected to grow by 6.8 percent in fiscal year 2021, according to a latest Asian Development Bank report.
The growth reflects gradual recovery, supported by a strong manufacturing base and strengthening of growth in export destinations, said the Manila-based lender in the report Asian Development Outlook (ADO) 2020 Update released Tuesday.
It said inflation is expected to moderate to 5.5 percent and current account deficit to narrow to 1.1 percent of GDP in the fiscal year 2021.
According to the ADO, the main risk to this growth projection is a prolonged pandemic in Bangladesh or its export destinations.
"Bangladesh economy has started recovering from the pandemic," said ADB Country Director for Bangladesh Manmohan Parkash.
"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. Early access to vaccine and continued emphasis on health pandemic management can help sustain this recovery," he said.
In fiscal 2021, it said the government's fiscal and monetary stimulus measures are expected to boost public and private investment.