Expatriates send money to Bangladesh was the only considerable support for the country’s economy during the pandemic. Resolving longer-term structural issues could hasten the recovery after COVID-19. Diversifying exports outside the RMG sector, deepening the financial sector, enhancing urbanization, and boosting public governance are among the reform initiatives. Addressing infrastructural gaps will hasten growth and minimize disparities in opportunity across regions and cities. Human capital development is also a top priority. Bangladesh’s Human Capital Index score is greater than the South Asian average, but it is lower than that of comparator countries.
Addressing climate risk susceptibility would help economic development to be more resilient to future shocks. Shifting to green growth could help ensure the long-term viability of development outcomes for future generations. Bangladesh can speed its recovery from the economic slowdown and move closer to upper-middle-income status with the appropriate policies and prompt action like an increase in money transfer to Bangladesh through remittance and foreign direct investments.
What Are The Predictions Of IMF And The World Bank About The Growth Rate Of The Bangladeshi Economy?
The International Monetary Fund (IMF) has raised its GDP growth forecast for Bangladesh to 5% in 2021 from 4.4 percent in October last year, citing concerns about the country’s economic prospects in the aftermath of the coronavirus outbreak. According to the IMF’s newest World Economic Outlook report, the South Asian country’s GDP is predicted to rise 7.5 percent in 2022 as the global economy attempts to regain its footing with the worldwide distribution of vaccines.
As governments allowed transportation, formal channels like overseas Bangladeshi send money to Bangladesh online accompanied by informal money transfer methods. The IMF recently boosted its global economic growth prediction, predicting that global output will grow at a pace of 6% this year, the highest since the 1970s, thanks in part to unprecedented development strategies to the COVID-19 pandemic.
GDP growth is expected to be 5.24 percent in FY 2019-20, according to the Bangladesh Bureau of Statistics. According to the report, per capita income increased to USD 2064 in the same period, up from USD 1909 in the previous fiscal year. In 2020, this will be one of Asia’s greatest per capita GDP growth rates. Bangladesh’s per capita GDP has increased at a compound annual growth rate of 9.1% over the last five years. One of the significant factors of the 9.1% growth of the GDP is Bangladeshi foreign workers who send money to Bangladesh online during a rough time of the pandemic.