8.5pc GDP growth set for fiscal 2020-21 on hopes of V-shaped recovery

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The government is gunning for an 8.5 % GDP growth next fiscal year in the hope the economy would be springing back to an increased expansion trajectory once the coronavirus outbreak has been quelled.

The federal government is expecting a V-shaped recovery in fiscal 2020-21 after its hopes of pulling off an 8.2 % gross domestic product output this fiscal year were shattered as a result of the pandemic, said the official of the finance ministry.

A V-shaped recovery involves a sharp decline in monetary output accompanied by a sharp rise back to its previous peak.

The International Monetary Fund also projected a V-shaped recovery for Bangladesh, saying the GDP growth will be 2 per cent this season, the cheapest since 1988, before recording its highest-ever expansion of 9.5 per cent in 2021.

The new growth target was disclosed to Prime Minister Sheikh Hasina yesterday in a gathering with a finance ministry team led by Finance Minister AHM Mustafa Kamal at the premier's official residence.

The next budget and the implementation of various stimulus packages announced by the federal government to pull the economy out of your wreckage thanks to the public health crisis were also discussed at the meeting. 

An 8.5 % GDP growth target is within the sight of the economy as the beautiful collapse this fiscal year was not for any fundamental reason but a public health emergency, the official said.

"So, after the crisis has ended, the economy will charge ahead completely steam as in the past," he added.

Bangladesh clocked the best monetary growth in Asia in 2019.

Both government and the central bank have up to now declared 18 stimulus packages worth Tk 95,619 crore to tackle the economical fallout from the pandemic. The packages are equal to 3.5 % of the country's GDP.
Source: https://www.thedailystar.net

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