With a 6% growth forecast, Bangladesh is defined to be world’s fastest growing economy
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Bangladesh’s 6% growth forecast is leaner than previously targeted 8.2% & down from 8.15% this past year, but it’ll be an outlier in a world set to contract.
Bangladesh, the world’s second-largest apparel exporter, sees financial growth of at least 6% this season, a pace that could make it an outlier in a world set to contract.
Growth will slow to a variety of 6%-7% in the entire year to June 30, Planning Minister Muhammad Abdul Mannan said within 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 most effective expansion globally - as many economies are looking at a recession amid the coronavirus pandemic.
It isn’t a reason 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 with its estimate, putting the nation’s gross domestic product growth at 3.8% for fiscal 2020.
“Growth is plainly way below, a whole lot below projection,” Minister Mannan said. “We need to reorganize our priorities. Health is among the most new urgent subject, which requires much more investment than before.”
More than 80% of the country’s export earnings result from ready-made garment, and the industry is currently facing a string of order cancellations.
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 as well.
“The coronavirus has affected us badly,” Mannan said, adding that it was essential to allow resumption of activity. “This is a bitter pill.”
Bangladesh is scheduled to present its total annual budget on June 11, and the spending plan will probably give attention to shoring up other sectors of the economy.
“Expenditure is certainly going up within the next budget as we are in need of more money for health insurance and agriculture and roads and other important sectors,” Mannan said.
Source: https://theprint.in