Bangladesh economy to grow 5.1 per cent in 2021-22, says World Bank

THE World Bank has forecast a gross domestic product (GDP) growth rate of 5.1 per cent for Bangladesh in the fiscal year 2021-22.

In its latest report on the ‘Global Economic Prospects’, the global lender noted that Bangladesh's economy grew at 3.6 per cent in the current financial year.

Private consumption, the main driver of growth, is supported in the country by normalising activity, moderate inflation, and rise in ready-made garment exports, the report said.

However, it also noted that the Covid-19 pandemic could pose a challenge for economic recovery in Bangladesh and the entire South Asian region.

According to the report, outlook for the South Asian region remains highly uncertain as recovery is in early stage and the pandemic continues to spread.

Recovery has been faster than expected with activity in most sectors overtaking pre-pandemic levels, but low level of vaccination in South Asian region including Bangladesh remains a concern.

“Although nearly all countries in the region have begun vaccinations, progress has been slow, and the region’s largest economies—Bangladesh, India, and Pakistan—have vaccinated only a small fraction of their populations,” the World Bank report said.

One of the most challenging legacies of the pandemic in South Asia will be its impact on poverty, it said.

“The region is expected to see tens of millions more extreme poor—living below  $1.90 (£1.34) per day—by the end of this year,” the report said.