AMN/ WEB DESK
Riding on continued recovery in exports and consumption, the Bangladesh economy is projected to grow at 6.4 percent in the fiscal year 2021-22, says the World Bank. The GDP growth rate for the FY 2020-21 is estimated to be 5 percent. The World Bank in its latest twice-yearly regional on South Asia released on Thursday said that the recovery in Bangladesh is expected to gradually accelerate particularly if the supply of vaccines rises and the scarring effects of the pandemic are contained. The poverty rate is expected to reduce marginally to 12.5 percent in FY 2021 from the level of 12.9 percent in FY 2020.
The World Bank has forecast that the average annual growth rate of South Asia will be 3.4 percent over 2020-23. This is 3 percentage points less than the four years preceding the pandemic.
The report points out that recovery in South Asia continues but it remains fragile and uneven. Most of the countries are far from the pre-pandemic trend levels. The pandemic is estimated to have caused 48 to 59 million people to become or remain poor in 2021 in South Asia.
Recommending a rethink in the long-term development models, the report says that with the emergence of new digital technologies, South Asia has an opportunity to shift from a manufacturing led growth model to the potential of its services sector.
The adoption of digital technologies makes services more tradable. It also enables services to increase productivity of other sectors, including manufacturing, and creates new markets. Some South Asian countries are increasingly providing business and professional services that add value to manufacturing and play a key role in global value chains, says the World Bank.
World Bank Chief Economist for the South Asia Region Hans Timmer said that the region needs to rethink regulations and establish new institutions to support innovation and competitiveness to realise the full potential of the services led development.