Bangladesh must bolster COVID-19 action to protect people, revive economy: WB

Bangladesh and other South Asian countries must ramp up action to curb the health emergency, protect their people, especially the poorest and most vulnerable, and set the stage now for fast economic recovery, the World Bank said in its twice-a-year-regional update on Sunday.

Amid the mounting human toll and global economic fallout triggered by the COVID-19 pandemic, the latest South Asia Economic Focus anticipates a sharp economic slump in each of the region’s eight countries, caused by halting economic activity, collapsing trade, and greater stress in the financial and banking sectors.

In this fast-changing and uncertain context, the report presents a range forecast, estimating that regional growth will fall between 1.8 and 2.8 percent in 2020, down from 6.3 percent projected six months ago.

That would be the region’s worst performance in the last 40 years, with temporary contractions in all South Asian countries.

In case of prolonged and broad national lockdowns, the report warns of a worst-case scenario in which the entire region would experience a negative growth rate this year, according to a media release issued from Washington.

This deteriorated forecast will linger in 2021, with growth projected to hover between 3.1 and 4 percent, down from the previous 6.7 percent estimate.

“The priority for all South Asian governments is to contain the virus spread and protect their people, especially the poorest who face considerably worse health and economic outcomes,” said Hartwig Schafer, World Bank Vice President for the South Asia Region.

“The COVID-19 crisis is also an urgent call-to-action moment to pursue innovative policies and jumpstart South Asian economies once the crisis is over. Failure to do so can lead to long-term growth disruptions and reverse hard-won progress in reducing poverty.”

Bangladesh’s economy will be significantly impacted by the COVID-19 pandemic, said the WB.

The decline in national and global demand for manufactured goods, particularly in the garment sector, risks creating unemployment and deepen poverty, it said.

HM

 

 

 

Bangladesh must bolster COVID-19 action to protect people, revive economy: WB

Bangladesh and other South Asian countries must ramp up action to curb the health emergency, protect their people, especially the poorest and most vulnerable, and set the stage now for fast economic recovery, the World Bank said in its twice-a-year-regional update on Sunday. Amid the mounting human toll and global economic fallout triggered by the COVID-19 pandemic, the latest South Asia Economic Focus anticipates a sharp economic slump in each of the regions eight countries, caused by halting economic activity, collapsing trade, and greater stress in the financial and banking sectors. In this fast-changing and uncertain context, the report presents a range forecast, estimating that regional growth will fall between 1.8 and 2.8 percent in 2020, down from 6.3 percent projected six months ago. That would be the regions worst performance in the last 40 years, with temporary contractions in all South Asian countries. In case of prolonged and broad national lockdowns, the report warns of a worst-case scenario in which the entire region would experience a negative growth rate this year, according to a media release issued from Washington. This deteriorated forecast will linger in 2021, with growth projected to hover between 3.1 and 4 percent, down from the previous 6.7 percent estimate. The priority for all South Asian governments is to contain the virus spread and protect their people, especially the poorest who face considerably worse health and economic outcomes, said Hartwig Schafer, World Bank Vice President for the South Asia Region. The COVID-19 crisis is also an urgent call-to-action moment to pursue innovative policies and jumpstart South Asian economies once the crisis is over. Failure to do so can lead to long-term growth disruptions and reverse hard-won progress in reducing poverty. Bangladeshs economy will be significantly impacted by the COVID-19 pandemic, said the WB. The decline in national and global demand for manufactured goods, particularly in the garment sector, risks creating unemployment and deepen poverty, it said. HM