Bangladesh to reduce 0.2-0.4 % GDP growth rate due to virus outbreak: ADB
Around 0.2 per cent to 0.4 % of Bangladesh's Gross Domestic Product (GDP) growth rate could be lost due to Covid-19 outbreak, as forecasted by the Asian Development Bank.
In line with the Asian Development Outlook (ADO) 2020, ADB's flagship financial publication, Bangladesh is likely to grow by 7.8 % in Fiscal Year 2020.
The growth rate would be 8.0 % in FY2021, the report also suggests.
"Bangladesh economy continued to execute well regardless of the global economical slowdown. However, there is a downward risk as a result of COVID-19 global pandemic," said ADB's Country Director Manmohan Parkash.
The ADO 2020 also notes that low earnings mobilisation is still an integral challenge for Bangladesh economy.
"The low earnings to GDP ratio in Bangladesh diminishes the country's capacity to sustain high economic growth and reduce poverty," says the report.
Revenues thus ought to be raised significantly through comprehensive tax reforms, by expanding the tax base and making resource mobilisation better to aid much-needed public expenditure on infrastructure, health insurance and social development, the report further adds.
