Sunday, 17 January, 2021

Bangladesh GDP will fall in 2020, but jump in 2021: IMF’

Published on: 11:52 pm - Wednesday | April 15, 2020


After falling to only 2 per cent growth this year, Bangladesh economy will see a big jump in next fiscal year with a record growth of 9.5 per cent if the pandemic fades in the second half of this year and economic activities return to normalcy, International Monetary Fund (IMF) says in a report released on Tuesday.

Bangladesh achieved 8.15pc growth in last fiscal year and the budgetary projection of current fiscal is 8.2pc.

However, the IMF projected 7.4 per cent of growth for Bangladesh for the current year report published in October last year.

In a report this week, the World Bank projected 2 to 3 per cent of growth for Bangladesh in the current fiscal year.

The World Bank said Bangladesh’s economy will grow 1.2 to 2.9 per cent in the next fiscal year and 2.8 to 3.9 per cent in the fiscal year 2021-21.

The country will face a longer time recession, according to the World Bank report. But the IMF projected an earlier recovery for the economy.

The latest IMF report said COVID-19 pandemic is inflicting high and rising human costs worldwide, and the necessary protection measures are severely impacting economic activity.

As a result of the pandemic, the global economy is projected to contract sharply by 3 percent in 2020, much worse than during the 2008–09 financial crisis.

The global economy is projected to grow by 5.8 per cent in 2021 as economic activity normalizes, helped by policy support.

Effective policies are essential to forestall the possibility of worse outcomes, and the necessary measures to reduce contagion and protect lives are an important investment in long-term human and economic health, IMF says in the report. -observerbd