Balance of payment surplus, a healthy foreign exchange reserve figure, and a low public debt-GDP ratio are the key factors that allow Bangladesh to boost growth despite a growing pandemic crisis, according to the global research team of Standard Chartered Bank. While the world economies are sinking into recession, Bangladesh is one other nation besides Vietnam which is likely to deliver a positive growth rate in 2020.
“Even though the economy faced challenges during the April to June period in the face of Covid-19, there were early signs of recovery in some pockets as the economy started to open in June”, said Saurav Anand, the Bank’s South Asia economist. Bangladesh’s low ratio of public debt to gross domestic product (33 percent-34 percent) allows it to borrow low-cost funds from the global financial market, added Saurav.
Also, a surplus in the balance of payment, an increase in remittance inflows and foreign exchange reserves of $37 billion helps Bangladesh further in defending against the pandemic and the possible second wave.
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