[ad_1]
He described his predictions as “far from realistic.”
The Minister said: “This World Bank forecast is inconsistent with the current transition of the Bangladesh economy. If we list all the World Bank projections so far, we can see that the projections they make are far from reality. This time too, the company has issued a traditional style statement. “
The World Bank released a report on the economic situation in South Asia last Thursday. According to the report titled ‘South Asia Economic Focus’, Bangladesh’s GDP growth could slow to 1.6 percent in fiscal year 2020-21 due to the impact of the epidemic. The donor agency has forecast growth of 3.4 percent in the upcoming 2021-22 fiscal year.
However, the Asian Development Bank (ADB) has said that Bangladesh’s economic activities have started to change after the coronavirus epidemic. And for this reason, the GDP of Bangladesh in the current financial year may be 7.8 percent.
The government has also projected a GDP growth of 7.2 percent in the current budget; Despite criticism that it is ambitious, Finance Minister AHM Mustafa Kamal remains optimistic.
Before leaving for Dubai, he told bdnews24.com, “The Bangladeshi economy is booming. All indicators are good now. My guess is that this time our growth will be 7.1 to 7.2 percent.”
The World Bank report further said that South Asia is headed for an unprecedented economic recession as the impact of the epidemic drags on. Informal sector workers have suffered the most, and the epidemic has driven millions into extreme poverty.
The World Bank says that GDP growth in the South Asian region could contract to 6.8 percent in the current fiscal year, down from 6 percent in the previous five years.
With GDP growth of 7.15 percent in fiscal year 2018-19, Bangladesh also posted 7.2 percent growth for fiscal year 2019-20. But the two-month lockdown between the epidemic and the stagnation of world markets had a major impact.
In the last financial year, the government’s GDP growth slowed to 5.24 percent, although many analysts expect this figure to be even lower.
The World Bank predicts that remittance inflows to Bangladesh, one of the world’s fastest growing economies, may slow down, while consumption in the manufacturing and construction sectors will decline, leading to lower spending.
If demand for ready-made garments in buying countries does not increase, the World Bank believes that Bangladesh may suffer the most in terms of investment and export earnings. Even if demand in the European and US markets starts to increase, there will be doubts about its sustainability.
Despite the epidemic, the amount of expatriate income in Bangladesh has risen to a record high in the past three months. The World Bank says that expats are sending all their savings home before returning home after losing their jobs, the result may be an increase in remittances.
According to the report, the demand for workers in the oil-rich Middle East countries is not expected to increase much. As a result, the flow of remittances from Bangladesh may decrease in this financial year.
There is a big difference between the ADB forecast and the World Bank forecast for government growth.
That is why the finance minister has rejected the World Bank’s forecast. A statement from the Finance Ministry said late Friday.
In it, Finance Minister Mustafa Kamal said: “The coronavirus caused a slowdown in the economy. Appropriate financial incentives and government social security measures have consolidated the economy. Almost all sectors of the economy, including public and private spending, investment, exports, and expatriate income, are in a very capable position.
“Bangladesh has been at the forefront of GDP growth for the past 10 years. We are confident that this trend will continue in the future as well.”
The Minister of Finance said: “The World Bank is an international financial institution. When they present information about one country or one topic, it can affect everyone for good reason. The World Bank forecast for GDP growth for the current fiscal year is inconsistent with the current state of the economy in Bangladesh.
“The numbers they’ve said about our GDP this time around have been the same since the coronavirus slowed the economy, and they’re still there.”
Highlighting the country’s economic change, Mustafa Kamal said: “Three months have passed into our fiscal year; There are still nine months. The slowdown in the economy caused by Covid-19 is now quite normal. Despite significant pressure on health and the management of the epidemic, appropriate economic incentives from the government and social security have consolidated the economy. Guaranteed basic products and services for the poor and vulnerable. Almost all sectors of the economy, including domestic, private and public spending, investment, exports and remittances, are in a solid position ”.
Commenting on the World Bank forecast, he said: “We all know that their projection is characterized by a very conservative approach. If you list all the World Bank projections so far, it will be seen that the projections they make are far from reality! We believe that they have again issued such a conventional declaration.
“We set and achieve goals based on our capabilities. Achieving proves time and time again that we are right. Once again, we will achieve the desired growth and demonstrate that our objectives are correct ”.
Explaining the reason for this confidence, the Finance Minister said: “Although remittances have increased in recent times, many people think that it is temporary. When we introduced incentives to encourage remittances legally, many said it would have no effect on remittances. But the reality is that remittance inflows have increased thanks to incentives.
“Some of the so-called experts say that the income of expatriates has increased because the coronavirus has caused expatriate brothers and sisters from different countries, including the Middle East, to come back and sell everything they have, hence this growth. But they may have forgotten Prime Minister Sheikh Hasina’s bold decision to simplify the 2% cash remittance and incentive rules.
“The amount of remittances sent to the country through banking channels has increased even before Bangladeshi expatriates arrived in Corona. Since the beginning of the 2019-20 fiscal year, when Covid-19 did not exist, there was an upward trend in remittance flows. Therefore, the idea that this trend will not continue in the future is not logical.
“At the opening ceremony of the 2011 Cricket World Cup, I shouted in the middle of the debate: ‘This time the world will not know Bangladesh. And let the world know you, welcome to this day … ‘. Looking at the ongoing debate on the capabilities and achievements of Bangladesh, he still wants to say to stakeholders: “Let us recognize a new kind of different Bangladesh.”
Addressing the people of the country, the Finance Minister said: “We have repeatedly said that the people of this country are the lifeblood of the economy of this country. They will demonstrate once again that the projections made by the World Bank are inconsistent. Brave Bengali nation has proven it time and time again in the past, this time too.
“We are all aware that we are building the Padma Bridge with our own hard-earned money, ignoring all obstacles. We believe that the Prime Minister has projected or outlined the growth of the budget for the people of the country by believing in the people of the country. .
“Bangladesh has been at the forefront of GDP growth for the past 10 years. We are confident that this trend will continue in the future as well.”
read more
The most affected by the epidemic is the informal sector: the World Bank
As for the economy, the ADB forecasts a growth of 7.8%
All sectors are in a ‘flying’ state after the impact of the epidemic: Minister of Finance
[ad_2]
