China growth helps Bangladesh economy

Bangladesh is among top five economies recovering faster as a result of Chinese growth_ according to an international publication. The five economies that are dodging bullets of COVID-19 are: China_ Vietnam_ Bangladesh_ Guyana and Guinea. The publication said the five economies are boosting as a result of the Chinese economy_ which is expected to return to the pre-COVID period shortly. The publication named fDi intelligence said fellow manufacturing hub Bangladesh saw GDP growth slow to 3.8 per cent in 2020_ down by more than half of the previous year_ following the initial stages of the Covid-19 outbreak_ the IMF figures show. It_ however_ said Bangladesh's growth is expected to pick up moderately to 4.4 per cent in the next fiscal year. "China's resilience is also shoring up growth in the region_ particularly in Vietnam and Bangladesh_ and is felt as far as Guinea_ where Chinese demand for mining commodities is enough to propel the African country through the pandemic_" the report said. It also said rising oil star Guyana_ a south American country_ remains in a league of its own with a stellar 26 per cent GDP growth expected for 2020. It said Bangladesh export is bouncing back while remittance inflow is surging tremendously. Its import is also picking up. "With lockdown lifted and external demand slowly recovering_ exports and remittances are showing signs of recovery_ growing by 2.6 per cent and 49 per cent_ respectively_ year-on-year in the July-September quarter"_ it said. Beijing also declared zero-duty for 97 per cent of its Bangladeshi imports in July last. Such growth of these economies_ including Bangladesh_ is surfacing at a time when the International Monetary Fund (IMF) expects the pandemic to sink world gross domestic product (GDP) by 4.4 per cent this year. "The most notable exception is China_ which has an estimated 1.9 per cent real GDP growth in 2020_" IMF said in its latest report. On top of that_ it is forecast to grow by 8.2 per cent in 2022. It also said far from bearing the economic scars of Covid-19_ it is set to bounce into next year with pre-pandemic growth rates. In Vietnam_ GDP growth is expected to slow to 1.9 per cent in 2020 and bounce back to 6.7 per cent in 2021_ the IMF estimates. Combined with an assertive strategy to control the pandemic_ stronger execution of public infrastructure investments and the rapid recovery of China_ its second largest trade partner_ have helped sustain Vietnam's. Vietnam's trade_ which has diversified from its low-tech base of textiles and footwear to higher tech manufacturing goods_ remains broadly resilient_ the IMF says_ in line with strong global demand for pharmaceutical products and electronics. In Guyana_ the discovery of deepwater oil fields has heralded exponential growth. The small_ historically poor Latin American country_ tops the IMF's list at an expected 26.2 per cent real GDP growth in 2020_ revised down from the 2019 prediction for the year of 86 per cent. Guinea_ another poor country rich in natural resources_ has benefited from its extended credit facility agreement with the IMF over the past three years_ which has totalled roughly $117.6 million in disbursements.