UN report: Bangladesh’s economic growth dropped to 0.5% in 2020
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Bangladesh has seen a good dramatic drop in it is monetary growth in the 2020 twelve months as the country’s monetary growth fell to 0.5% in 2020 from 8.4% in 2019, says an US (UN) report.
The UN revealed the info in the report titled "World Economic Situation and Potential customers 2021" on Monday.
Mentioning that the pandemic and the global monetary crisis have consequently still left deep marks upon South Asia, the survey said Bangladesh, the most effective growing economy in your community, were able to mitigate the decline in the next half of 2020 through recovery in trade and remittances.
The report estimated the country’s monetary growth to possess declined to 4.3% in the 2019-2020 fiscal year. It also projected the economic expansion to grow at 5.1% in the 2020-2021 fiscal year and additional 7.6% in the 2021-2022 fiscal year.
Earlier, the government announced that Bangladesh achieved 5.2% development in the 2019-2020 fiscal year as the World Lender estimated the economic growth at only 2% and the International Monetary Fund (IMF) at 3.8%.
Global economical growth in 2021
The UN warned that the world economy is “on a cliffhanger,” even now reeling from the Covid-19 pandemic whose impact will be felt for years but still likely to make a modest recovery of 4.7% in 2021 which would barely offset 2020 losses, reports UNB.
The report said the once-in-a-century crisis sparked by the global impact of the coronavirus caused the global economy to shrink by 4.3% in 2020 - the sharpest contraction in global output because the Great Depression that commenced in 1929 and far greater than the 1.7% lowering through the Great Recession of 2009.
“The depth and severity of the unprecedented crisis foreshadows a slow and painful recovery,” said UN chief economist Elliott Harris, the assistant secretary-general for economic development.
“As we step right into a long recovery phase with the roll from the vaccines against Covid-19, we are looking for to get started on boosting longer-term investments that chart the road toward a more resilient recovery - along with a fiscal stance that avoids premature austerity.”
According to the article, the lockdowns, quarantine measures, and social distancing presented during the second quarter of 2020 “helped to save lives but also disrupted the livelihoods of vast sums of folks worldwide.”
“By April, full or partial lockdown measures had influenced almost 2.7 billion workers, representing about 81% of the world’s workforce,” the report said.
Another 131 million persons were pushed into poverty, most of them women, children and people from marginalized communities.
China, the world’s second-largest market where Covid-19 primary emerged, was the simply country in the world to register positive economic growth in 2020 - 2.4% - and the UN forecasts that it'll expand by 7.2% in 2021.
Hamid Rashid, chief of the UN’s Global Economic Monitoring Branch and the report’s lead author, told a news conference launching the statement that China will account for about 30% of global growth in 2021.
If that happens, he said, it can help various countries in Africa, Latin America, and the Caribbean that supply information and commodities to China.
In line with the UN forecasts, the US economy will develop 3.4% in 2021 after shrinking 3.9% in 2020, Japan's economy will grow 3% this season after contracting 5.4% this past year, and economies of Euro-zone countries will grow 5% in 2021 after shrinking 7.4% in 2020.
Developing countries found a less serious contraction of 2.5% this past year, and the UN is forecasting a 5.7% rebound in 2021.
The UN said “it'll remain critical” that the Band of 20 - the world’s 20 key economies accounting for almost 80% of world output - “return to the trajectory of growth, not merely to lift the rest of the world economies but also to help make the world economy more resilient to future shocks.”
Global fiscal stimulus
The $12.7 trillion in global fiscal stimulus - over fifty percent from Germany, Japan and the United States -- “prevented an excellent Depression-like monetary catastrophe worldwide,” the UN explained.
“In dollar conditions, stimulus spending per capital averaged almost $10,000 in the developed countries, although it amounted to significantly less than $20 per capita whatsoever developed countries,” the article said.
Rashid said the principal target of the fiscal stimulus was to stabilize the global overall economy “so there was zero drying up of liquidity.”
This was achieved, he said, however the secondary goal was to stimulate investments and stop bankruptcies and “here we see significant slack.”
Rashid said all of the major economies found significant increases in funds supply, about 23% for the United States, which isn't surprising since most stimulus money went in to the financial markets because households were not able to spend the amount of money or businesses were unable to invest because these were uncertain about the near future.
The big winners were stock marketplaces, he said.
Looking at the key stock indexes, Rashid stated, Japan’s Nikkei 225 elevated about 45% among March and December and the Dow Jones and S&P 500 both went up by more than 30%, in comparison to average increases underneath 10% in the last five years.
“And that is alarming because that shows the disconnection between your real economical activities and the economical sector actions,” he said.
Source: https://www.dhakatribune.com