CNI Desk: The World Bank has predicted that Bangladesh’s growth will slow to 1.6 per cent in the fiscal year 2019-20, which ends this June.
Moreover, it may also witness drastic declines to 1 percent in the coming fiscal year, the World Bank said.Earlier, the Economist Intelligence Unit (EIU) had also predicted GDP growth of 1.6 percent for Bangladesh.
If the GDP growth comes down to 1.6 percent as per World Bank’s projections, it will be the lowest figure in 37 years in Bangladesh.
According to World Bank Indicator (WDI) data, the country’s GDP growth rate was 2.13 percent in the fiscal year 1981-82.
The country’s growth is estimated to have slowed as the recovery in industrial production is reversed by Covid-19 related disruptions such as mitigation measures and global exports plunge, and as remittances fall — the World Bank observed in its report.
In South Asia, the report projected, the GDP will contract by 2.7 per cent in 2020 as pandemic mitigation measures hinder consumption and services and uncertainty about the course of the pandemic chill private investment.
The global lending agency also forecast that the global economy will shrink by 5.2 percent in 2020 – the deepest global recession in eight decades, despite unprecedented policy support.Neighbouring country India’s economy is forecasted to drop by 4.2 percent in the current fiscal year and to contract by 3.2 percent in the fiscal year 2020-21.
The report says that Pakistan (-2.6 percent in FY 2019-20) and Afghanistan (-5.5 percent in 2020) are both projected to experience contractions.