Despite the global economic recession, the size of the economy of Bangladesh is increasing. The Asian Development Bank (ADB) estimates that Bangladesh’s GDP may grow by 6.6 percent in the fiscal year 2022-23.
This information was given by ADB’s Country Director Edimon Ginting while releasing the Asian Development Outlook (ADO) 2022 at ADB’s Dhaka office today.
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It has been said that the inflation rate of 6.2 percent in the current financial year may rise to 6.7 percent in the 2022-23 financial year.
Also, the current account deficit is expected to narrow to 3.6 percent of GDP in FY22 from 4.1 percent of GDP as imports fall and remittances rise. However, the main risk is a global export slowdown caused by the Russia-Ukraine war.
Edmond Ginting said, ‘The government has dealt with prolonged economic uncertainty relatively well and has implemented appropriate policies to manage this uneven situation.’
He said, ‘However, such a time is suitable for reforms to increase the country’s growth in the medium term. Such reform programs include promoting domestic resource efficiency, developing financial markets and promoting competitiveness to create productive jobs in the private sector.’
He also said, ‘Uncertainty in the international energy market can be a good driver to speed up the reform program, through which Bangladesh can achieve its climate change goals and reduce its dependence on fossil fuels by expanding local sustainable energy supply.’
According to the AD 2022 update, private investment growth will slow due to global uncertainty and energy shortages.
ADB has loaned nearly $40 billion to Bangladesh in its 49-year partnership.