A 6% Growth Forecast Makes Bangladesh Outlier in Global Economy
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Bangladesh, the world’s second-largest apparel exporter, sees economical growth of at least 6% this year, a pace that will make it an outlier in a global set to contract.
Growth will slow to a range of 6%-7% in the year to June 30, Planning Minister Muhammad Abdul Mannan said in an interview on Thursday.
While that is less than a previously targeted 8.2%, and down from 8.15% this past year, it’s poised to be the quickest expansion globally -- as much economies are staring at a recession amid the coronavirus pandemic.
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It isn’t grounds for celebration though for a country known to rely heavily on global demand by virtue of it being the world’s clothing factory. The International Monetary Fund isn’t as bullish using its estimate, putting the nation’s gross domestic product growth at 3.8% for fiscal 2020.
“Growth is evidently way below, a whole lot below projection,” Minister Mannan said. “We have to reorganize our priorities. Health is just about the new urgent subject, which requires a lot more investment than before.”
A lot more than 80% of the country’s export earnings come from ready-made garment, and the industry is currently facing a string of order cancellations.
Read: Workers Who Make the World’s Clothes Are Facing Abject Poverty
European and U.S. buyers have canceled or suspended $3.2 billion of orders since March, based on the Bangladesh Garment Manufacturers and Exporters Association. A two-month-lockdown to fight the pandemic has hurt other industries aswell.
“The coronavirus has afflicted us badly,” Mannan said, adding that it was necessary to allow resumption of activity. “This is a bitter pill.”
Bangladesh is scheduled to present its twelve-monthly budget on June 11, and the spending plan is likely to focus on shoring up other sectors of the economy.
“Expenditure is going up within the next budget as we need more money for health and agriculture and roads and other important sectors,” Mannan said.
Source: https://www.bloomberg.com