DHAKA, Jan. 12 (Xinhua) -- The World Bank has forecasted 6.9-percent GDP growth for Bangladesh in the fiscal year of 2022-23 (July 2022-June 2023).
The Washington-based lender made the projection in its latest Global Economic Prospects report released on Wednesday.
The report said Bangladesh is expected to reach 6.4 percent growth in the current 2021-22 fiscal year (July 2021-June 2022) and 6.9 percent in the next 2022-23 fiscal year (July 2022-June 2023) due to increasing services activity and firming exports of readymade garments.
The pandemic with the emergence of the Omicron variant could hinder economic activity by requiring additional mobility restrictions and undermining external demand, said the report.
Climate risks are becoming more prevalent in South Asia as cyclones, floods, and droughts have become more frequent and as the costs of such events have increased, it said.
According to the report, South Asia's growth prospects have improved since June 2021, largely because of better prospects in Bangladesh, India, and Pakistan.
Regional growth is projected to accelerate to 7.6 percent in 2022 as pandemic-related disruptions fade, before slowing to 6.0 percent in 2023, the report said.
In most economies, monetary and fiscal policies are expected to remain broadly accommodative in 2022, but gradually shift to a focus on fiscal sustainability and anchoring inflation expectations.