ADB trims down projected growth rate of Bangladesh for FY 2020-21 to 5.5-6.0 per cent

• Integrity Education, Delhi
• 29, Apr 2021

The Asian Development Bank (ADB) has cut down the projected GDP growth rate of Bangladesh by at least 1 per cent from its earlier figure of 6.8 per cent for the FY 2020-21. The reduction in the projected figure is attributed to the recent surge in pandemic and lockdowns to control the spread of the Coronavirus. However, the growth rate is projected to pick up at 6.8 per cent in 2021-22 and  7.2 per cent in 2022-23, said the ADB in its latest Asian Development Outlook (ADO) 2021 released on Wednesday.

Country Director of ADB Manmohan Parkash said that the government of Bangladesh managed the first wave of COVID 19 in 2020 well with stimulus packages and other economic policies. Future economic growth will depend on recovery in domestic economic activities boosted by the implementation of the stimulus packages, rising inflow of remittances and rebound in the global trade.

The report noted that foreign remittances from overseas workers of Bangladesh showed a robust growth of over 35 per cent in the first nine months of the FY 2021 due to incentives given by the government. The FY 2020 also marked a growth rate of 10.9 per cent in foreign remittance coming in the country with a total inflow of over USD 18.2 billion.

Pointing out the very low level of expenditure on public health at 0.7 per cent of GDP in 2019, the ADO 2021 points out that the move towards universal health care is critical to ensure inclusive and sustainable development. It says health care in Bangladesh can improve with more public funding and effective administration.

ADB has already provided USD 650 million in loans and USD 7.23 million in grants for managing socio-economic impacts of the COVID-19 pandemic and supporting quick recovery to Bangladesh. ADB is also processing two program loans of USD 500 million each and a USD 940 million loan for the Government’s COVID-19 vaccine program. For 2021-2023, ADB has programmed a USD 5.9 billion firm and USD 5.2 billion standby project assistance for Bangladesh.

Sources : News on AIR