The World Bank has given a new forecast for the growth of Bangladesh. In a report titled Global Economic Prospects 2022 published this week, they said that the growth rate of Bangladesh in the current fiscal year 2021-22 could stand at 6.4%. And in the next fiscal year, i.e. 2022-23, the growth rate may stand at 6.9%.
Earlier in June last year, the World Bank had given a growth forecast for Bangladesh, but in January they increased it. For the current fiscal year, they have increased the growth forecast by 1.3% and for the next fiscal year, they have increased it by 0.7%. The increasing growth forecast means the World Bank is optimistic about the country’s economic situation.
According to the report, Bangladesh’s export trade is booming, especially in the ready-made garments sector, where growth is promising. Along with this, the domestic demand has also increased. This is due to an increase in labour income and remittances. The World Bank says the driving force behind growth is the growth of domestic demand. However, this demand and rising fuel prices have widened the trade deficit.
The report speaks positively about the economy of Bangladesh.
Meanwhile, the global economy is stumbling due to the proliferation of Omicron, the new variant of COVID-19. Developing countries will suffer as demand from big countries like the United States and China declines. However, Bangladesh will be a unique exception among the developing countries. While the global growth rate will decrease in 2022 and 2023, the World Bank has predicted that Bangladesh’s growth will increase.
