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BD economy on the road to recovery: ADB

Deft management amid Covid-19 pandemic extolled

Published : 15 Sep 2020 10:11 PM | Updated : 22 Sep 2020 08:36 AM

Asian Development Bank has highly lauded Bangladesh for managing its economy well amid the virus pandemic. Bangladesh economy has started recovering from the hurdles it faced during Covid-19 pandemic, added the ADB.

 ADB, an official United Nations Observer, said this in its "Asian Development Outlook (ADO) 2020," published on Tuesday from its head office in Manila, Philippines.

Manmohan Parkash, ADB country director in Bangladesh, said in the ADO, “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,” he added.

He also added that recent economic performance in exports and remittances, and the government's macroeconomic management, including securing foreign funds for economic stimulus and social protection, have made this recovery realistic.

Parkash further said, “We are encouraged by the increase in exports and remittances, and hope, the recovery will be sustained, which will help achieve the projected growth rate.” 

“Early access to vaccine and continued emphasis on health pandemic management can help sustain this recovery. This crisis is an opportunity to undertake further reforms in resource mobilisation, export diversification, employment generation, skills development, as well as social protection, and ADB is working with the government in these areas to provide further support,” he said.

The Asian Development Outlook 2020 has also predicted a 6.8 percent growth of gross domestic product (GDP) in Bangladesh for the current fiscal year 2020-21 despite coronavirus pandemic.

The ADB identified the projected growth as a reflection of gradual recovery, supported by a strong manufacturing base and strengthening of development in export destinations.

The report also forecasts 0.7 percent negative growth for the economies across developing Asia, the first negative economic growth since the early 1960s.

The report projected a 6.8 percent growth in the next year, as the region starts emerging from the economic devastation caused by the Covid-19 pandemic.

The report expected the rate of inflation to moderate to 5.5 in Bangladesh and the current account deficit to narrow to 1.1 percent of GDP in the current fiscal.

Prudent macroeconomic management and speedy implementation of the government stimulus measures are key imperatives to ensure the projected recovery, the report said.

The ADB identified a prolonged pandemic in Bangladesh or its export destinations as significant challenges for the growth projection.