With a 6% growth forecast, Bangladesh is set to be world’s fastest growing economy
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Bangladesh, the world’s second-largest apparel exporter, sees monetary growth of at least 6% this season, 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 entire year to June 30, Planning Minister Muhammad Abdul Mannan said within an interview on Thursday.
While that is lower 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 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 using its estimate, putting the nation’s gross domestic product growth at 3.8% for fiscal 2020.
“Growth is evidently way below, a lot below projection,” Minister Mannan said. “We must reorganize our priorities. Health has become the new urgent subject, which requires much 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.
European and U.S. buyers have canceled or suspended $3.2 billion of orders since March, according to the Bangladesh Garment Manufacturers and Exporters Association. A two-month-lockdown to fight the pandemic has hurt other industries as well.
“The coronavirus has damaged us badly,” Mannan said, adding that it was essential to allow resumption of activity. “This is a bitter pill.”
Bangladesh is scheduled to provide its total annual budget on June 11, and the spending plan is likely to give attention to shoring up other sectors of the economy.
“Expenditure is certainly going up in 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