Bangladesh is one of the fastest-growing economies in the south Asian region but due to the Corona Virus outbreak, ADB predicts 0.2 to 0.4% GDP drops this fiscal year.
According to a new report by the Asian Development Bank, the Gross Domestic Product (GDP) might fall 0.2 to 0.4 percent over this fiscal year due to the ongoing Corona Virus pandemic.
At the beginning of this year Asian Development Outlook, a Magazine by ABD, projected 7.8 percent GDP growth in the current fiscal year. This economic publication also predicted that this South Asian nation will be able to draw 8.0 percent GDP in the coming 2021FY.
The COVID-19 started in late December and now the whole world is under the attack resulting in the global lockdown. Due to the lockdown, the global economy has been slowing down every day. The share market hits a massive drop, shipments all over the world have stopped. And the Bangladesh economy is having a significant negative effect.
Despite the global economic crisis and slowdown throughout previous years, Bangladesh is one of the few economies to thrive with unexpected GDP growth.
Suggest by the report, Bangladesh also has a low revenue to GDP ratio reduces the capacity to sustain high economic growth and decrease poverty. Thus, if Bangladesh needs economic growth, a significant effort is necessary through comprehensive tax reform. It also needs to mobilize the resources and expand the tax base to invest in the infrastructure including health and social development.