Bangladesh's GDP to grow 3.4% in 2020

Bangladesh's GDP to grow 3.4% in 2020

However, the global growth is projected at -4.4% in 2020, a less severe contraction than forecast in the June 2020 World Economic Outlook (WEO) Update, said the International Monetary Fund. Specifically, she said governments should focus on direct aid to households and businesses.

"This is the worst crisis since the Great Depression, and it will take significant innovation on the policy front, at both the national and global levels, to recover from this calamity", Gopinath said.

China's economy is expected to grow 1.9 percent this year, nearly twice as much as previously forecast, the International Monetary Fund said Tuesday, tagging the superpower as the only major nation likely to expand in the face of the coronavirus.

The upward revision in the IMF's 2020 growth forecast reflects in particular better-than-projected second-quarter growth in the US and the euro area, a stronger-than-anticipated return to growth in China and signs of a more rapid recovery in the third quarter. On the other hand, India's per capita GDP is expected to decline 10.5% to $1,897 - the lowest in the last four years.

While most countries will see their economies return to pre-pandemic levels by 2022, some like those in Latin America will not see a recovery until 2023, she told reporters. Also, it is projected that emerging market and developing economies, excluding China, may incur a greater loss of output over 2020-21, compared to advanced economies.

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"It is essential that fiscal and monetary policy support are not prematurely withdrawn", Gopinath said in a blog post that accompanied the report. India's GDP growth has been consistently slowing down since 2016, and has plunged to negative this year. The IMF said the virus was continuing to spread in large countries including India and Indonesia, and those economies are far more dependent on hard-hit sectors including tourism and commodities as well as on remittances and other sources of external finance.

The IMF chief economist also noted that emerging market and developing economies - many constrained by elevated debt and higher borrowing costs - will need to prioritize critical spending for health and transfers to the poor and ensure maximum efficiency.

"The considerable global fiscal support of close to $12 trillion and the extensive rate cuts, liquidity injections, and asset purchases by central banks helped saved lives and livelihoods and prevented a financial catastrophe", said Ms Gopinath. Most economies are expected to experience lasting damage to supply potential and scars from the deep recession.

The minister pointed out that Egypt is the only country in the Middle East and Africa that has preserved the confidence of all three global rating institutions: "Standard & Poor's", "Moody's" and "Fitch" during one of the most hard periods in the global economy in light of the coronavirus pandemic. Governments globally have implemented $6 trillion in direct tax and spending measures, according to the International Monetary Fund. The IMF now expects the world economy to grow by 5.2% next year, a -0.2 percentage points downgrade from June's forecast.

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