Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Growth rate of the Gross Domestic Product (GDP) of Bangladesh may decline to 7.80 per cent in the current fiscal year (FY20) from 8.10 per cent in the previous fiscal year.
Nevertheless, the projected growth rate of Bangladesh will be the highest in South Asia in 2020, according to the latest report of the United Nations on global economy.
It pointed out that regional GDP growth fell faster than the global average, dropping from 5.6 per cent in 2018 to 3.3 per cent in 2019, but was moderated by strong growth in Bangladesh, Bhutan, Maldives and Nepal.
It also projected that growth rate of India and Pakistan may be recorded at 6.6 per cent and 2.10 per cent, respectively.
“Driven by the expansion of its garment industry, which has prospered partially as a result of trade disputes between the United States and China, Bangladesh enjoyed exceptional GDP growth of 8.1 per cent in 2019,” said ‘World Economic Situation and Prospects (WESP) 2020.’
The report observed that although global trade disputes and geopolitical tensions have dampened economic growth elsewhere, Bangladesh, Bhutan and Maldives ‘have taken advantage of significant economic opportunities’ created by the turmoil.
The UN WESP 2020, released on Friday, also projected that Bangladesh would face higher inflation in the current year.
Rate of consumer price inflation may reach 5.90 per cent in the current year which was 5.10 per cent in the previous year, according to the UN estimate.
Mentioning the progress in achieving Sustainable Development Goals (SDGs), the report pointed out that Least Developed Countries (LDCs) collectively remain far from achieving ‘at least 7 per cent’ GDP growth annually which was spelled out in target 8.1 of SDG.
“Only 15 per cent of the countries—Bangladesh, Benin, Cambodia, Ethiopia, Rwanda, Senegal and South Sudan—are growing at about that rate,” added the UN report.
Regarding the global growth, the report mentioned that impacted by prolonged trade disputes, the global economy suffered its lowest growth in a decade, slipping to 2.3 per cent in 2019.
“The world, however, could see a slight uptick in economic activity in 2020 if risks are kept at bay,” it said adding that growth of 2.5 per cent in 2020 is possible.
“A flareup of trade tensions, financial turmoil, or an escalation of geopolitical tensions could derail a recovery,” cautioned the UN WESP.
“In a downside scenario, global growth would slow to just 1.8 per cent this year,” it added.