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Bangladesh’s economic recovery to continue amid 2nd Covid wave: ADB

23 Jul 2021 19:41:14 | Update: 23 Jul 2021 19:52:04
Bangladesh’s economic recovery to continue amid 2nd Covid wave: ADB
ADB Headquarters in Philippines. — AFP Photo

The Asian Development Bank in its Asian Development Outlook Supplement of July said Bangladesh's economic recovery will continue amid the second wave of Covid-19 much like the previous fiscal year depending on exports and remittances.

ADB on Friday released the supplement on the Asian economy from Manila.

It said the impact of the second wave could lead to 8.9 per cent GDP growth of South Asia in 2021, which was 9.5 per cent last April.

This reduced GDP growth of Asia in the complementary outlook is largely due to the slowdown in India's GDP growth.

In the outlook supplement, the growth prospects of other South Asian countries, including Bangladesh, have been kept the same as in April.

In April, the outlook predicted a growth rate of 6.8 per cent in Bangladesh. However, when the report was released on April 26, ADB Country Director for Bangladesh Manmohan Prakash said that it could be 5.5 to 6 per cent.

Last June, the ADB said the GDP growth could reach 6.1 per cent in 2021.

The ADB said in the first 11 months of the last fiscal year, exports increased by 13.6 per cent and remittances increased by 39.5 per cent. On the other hand, revenue has increased by 12.9 per cent in the first 10 months.

The supplement said new waves of infections prompt a lower growth forecast of 8.9 per cent for 2021 in South Asia, followed by growth at 7.0 per cent in 2022. India’s 2021 growth projection is downgraded from 11.0 per cent in April to 10.0 per cent followed by 7.5 per cent growth in 2022.

Recovery is underway in developing Asia, but the growth projection for this year revised down slightly from 7.3 per cent in Asian Development Outlook 2021 in April to 7.2 per cent following renewed virus outbreaks in some economies. The projection for 2022 is upgraded from 5.3 per cent to 5.4 per cent.