Economic Growth of Bangladesh Outshines its Neighbors

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The Asian Development Bank (ADB) affirms the economic growth of Bangladesh in this crisis time. The financial performance of Bangladesh outshines its neighbors, with a high possibility of seeing a growth rate of 6.9% in the current fiscal year. 

In its ADO 2022, the Manila-based lender also expects a stronger GDP-growth output for the next FY2023, when Bangladesh is expected to develop at a pace of 7.1 percent. The growth projection presented by ADB discloses a higher rate than the forecast made by the World Bank. As per the “Global Economic Prospects” report of the World Bank, the economic growth rate of Bangladesh was supposed to be 6.4% in the current fiscal year and 6.9% in the following one. Meanwhile, the government of Bangladesh has set a target for the economy to develop at a faster rate of 7.2 percent in FY2022 and 7.5 percent in FY2023.

According to ADB Country Director in Bangladesh Edimon Ginting, who explained the drivers of growth, Bangladesh’s private investment is expected to rise further as investor confidence improves. When asked about the lessons learned from the recent economic disaster in Sri Lanka, Mr Ginting stated that a country must recognize the necessity of macroeconomic stability, correct policies, a responsible administration, and solid macroeconomic management.

Bangladesh, he believes, would not slip into the foreign-debt trap, nor would it fall into the middle-income trap, because it has “engines of growth.” Moreover, the ADB country director assures that Bangladesh has strong economic fundamentals to not encounter similar conditions as Sri Lanka. 

 

Source: The Financial Express

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