Bangladesh economy shows early signs of recovery: ADB

Bangladesh’s economy is showing signs of early recovery and its gross domestic product (GDP) is expected to grow by 6.8 per cent in 2020-21 fiscal year, the latest Asian Development Bank (ADB) report says.

Asian Development Outlook (ADO) 2020 Update was released on Tuesday.

The growth reflects gradual recovery, supported by a strong manufacturing base and strengthening of growth in export destinations. Inflation is expected to remain moderate to 5.5 percent and current account deficit to narrow to 1.1 percent of GDP in FY2021, an ADB news release said.
Prudent macroeconomic management and speedy implementation of the government stimulus measures are key imperatives to ensure the projected recovery.

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. 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.

"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," said Parkash.