ADB trims Bangladesh’s GDP outlook to 6.8% amid continued Covid-19 concerns

The Asian Development Bank (ADB) has revised the economic growth forecast for Bangladesh amid continued Covid-19 concerns to 6.8% for fiscal year 2021-22, which was projected to be 7.2% in April outlook.

ADB also lowered the growth for 2021 to 5.5% from 6.8% in the previous outlook.

Meanwhile, Bangladesh government has set a growth target of 7.2% for the current fiscal.

The ADB report has lowered its overall 2021 economic growth outlook for developing Asia, amid continuing concerns over the coronavirus pandemic.

It forecasts growth of 7.1% for developing Asia this year, according to an update of its flagship economic publication, Asian Development Outlook (ADO) 2021.

Developing Asia's economic prospects in 2021 and 2022 hinge on the progress of the pandemic and vaccination programs. The region's output is forecast to expand by 5.4% in 2022, supported by a broad recovery in exports, compared to the projection of 7.3% in April.

Meanwhile, the growth outlook for 2022 is raised to 5.4% from 5.3%.

Also, price pressures are expected to remain in check, with headline inflation forecast at 2.2% in 2021 and 2.7% in 2022.

ADB expects economic growth of 8.8% in South Asia this year, compared with the 9.5% forecast in April for the subregion.

The projection for India—the subregion's largest economy—is downgraded to 10.0% from 11.0% in 2021, while the outlook for next year has improved to 7.5% from 7.0%.

Maldives is revised up on more favourable prospects for international tourism, as ADB revised 2021 growth forecasts to 18% from 13.1%.

Pakistan on the better handling of the pandemic and last year's government stimulus. For Pakistan, it upped the economic growth to 3.9% from 2%.

Besides, it lowered the economic growth for Sri Lanka to 3.4% from 4.1% and to 2.3% from 3.1% for Nepal.

ADB didn't forecast any growth rate for Afghanistan in this September outlook. In the previous April outlook, a 3.0% economic growth was predicted for Afghanistan.

China, where the coronavirus first surfaced in December, ADB forecast 8.1% same as the previous April outlook.

Inflation in developing Asia is expected to remain in check, at 2.2% this year and 2.7% in 2022. The current trend of higher international commodity and food prices could stoke inflation in some of the region's economies.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.