The visiting team of International Monetary Fund (IMF) has said that despite many challenges, Bangladesh’s growth is progressive. In a statement released on Sunday, Rahul Anand, IMF Mission Chief for Bangladesh, said: “Against a challenging economic backdrop, Bangladesh remains one of the fastest growing economies in the Asia-Pacific region. However, persistent inflationary pressures, elevated volatility of global financial conditions, and slowdown in major advanced trading partners continue to weigh on growth, foreign currency reserves, and the Taka.” Also Read: IMF satisfied with progress of BBS’ GDP and inflation data updated under new method The team led by Anand arrived in Dhaka on April 25 to discuss recent macroeconomic and financial sector developments. The delegation also went over the progress made towards meeting key commitments under the IMF-supported program. Also Read: Bangladesh’s GDP growth rate will overtake China’s in current fiscal year, IMF predicts  “This will be formally assessed in the first review of the Extended Credit Facility (ECF) / Extended Fund Facility (EFF) / Resilience and Sustainability Facility (RSF) arrangements, which is expected to be undertaken later this year,” Anand’s statement said. Also Read: Preparing next budget a daunting task amid IMF pressure, global economic slowdown, speakers tell ERF workshop During the visit, the IMF team held meetings with Bangladesh Bank Governor Abdur Rouf Talukder, Finance Secretary Fatima Yasmin, and other senior government and Bangladesh Bank officials. The delegation also met with representatives from the private sector, bilateral donors and development partners.

Disruptions to supplies of commodities, financial strains and higher prices are among the impacts of the war in Ukraine that will slow economies in Asia in coming months, the World Bank says in a report released Tuesday. The report forecasts slower growth and rising poverty in the Asia-Pacific region this year as “multiple shocks” compound troubles for people and for businesses. Growth for the region is estimated at 5%, down from the original forecast of 5.4%. The “low case” scenario foresees growth dipping to 4%, it said. The region saw a rebound to 7.2% growth in 2021 after many economies experienced downturns with the onset of the pandemic. Also read: World Bank projects developing East Asia Pacific to grow 5 pct in 2022 The World Bank anticipates that China, the region’s largest economy, will expand at a 5% annual pace, much slower than the 8.1% growth of 2021. Russia's invasion of Ukraine has helped drive up prices for oil, gas and other commodities, eating into household purchasing power and burdening businesses and governments that already are contending with unusually high levels of debt due to the pandemic, the report said. The development lending institution urged governments to lift restrictions on trade and services to take advantage of more opportunities for trade and to end fossil fuel subsidies to encourage adoption of more green energy technologies. “The succession of shocks means that the growing economic pain of the people will have to face the shrinking financial capacity of their governments,” said the World Bank's East Asia and Pacific Chief Economist Aaditya Mattoo. “A combination of fiscal, financial and trade reforms could mitigate risks, revive growth and reduce poverty.” The report pointed to three main potential shocks for the region: the war, changing monetary policy in the U.S. and some other countries and a slowdown in China. Also read: Sri Lanka wants Bangladeshi investment in tourism, agriculture sector While rising interest rates make sense for cooling the U.S. economy and curbing inflation, much of Asia lags behind in its recovery from the pandemic. Countries like Malaysia may suffer outflows of currency and other financial repercussions from those changing policies, it said. Meanwhile, China's already slowing economy could falter as outbreaks of COVID-19 provoke lockdowns like the one now in place in Shanghai, the country's biggest megacity. That is likely to affect many Asian countries whose trade relies on demand from China. “These shocks are likely to magnify existing post-COVID difficulties," the report said. The 8 million households whose members fell back into poverty during the pandemic, “will see real incomes shrink even further as prices soar." The report noted that regional economies fared better during the 2021 Delta variant waves of coronavirus than in the initial months of the pandemic in 2020, largely because fewer restrictions were imposed and widespread vaccinations helped limit the severity of the outbreaks. On average, countries with a 1 percentage point higher vaccination rate had higher growth, it said.

Bangladesh has been reelected deputy member of the governing body of the International Labour Organization (ILO) from the Asia-Pacific region for the term 2021-2024.  The election was virtually held on Monday in Geneva during the ongoing 109th International Labour Conference (ILC). This is the third consecutive victory for Bangladesh in the ILO governing body. Also read: Bangladesh elected ILO Covid-19 Technical Committee chair Earlier, Bangladesh had served as a deputy member for the terms 2014-2017 and 2017-2021. Bangladesh secured the first position among the candidates of the Asia-Pacific region by bagging the highest 210 votes. Also read: ILO lauds progress in RMG sector A Bangladesh delegation, led by Begum Monnujan Sufian, State Minister for Labour and Employment, is virtually attending the ongoing ILC, which includes Labour Secretary KM Abdus Salam and Md Mustafizur Rahman, Bangladesh Ambassador and Permanent Representative in Geneva. Also read: ILO, UNICEF record first increase in child labour in two decades 

The Asia-Pacific region needs large, yet attainable, investments in resilience to protect development gains amid a fragile and inequitable post-COVID-19 economic recovery, says a report released on Tuesday.  The report was released by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok.  Also Read: ADB forecasts developing Asian economies in recession The  Economic and Social Survey of Asia and the Pacific 2021: Towards post-COVID-19 resilient economies forecasts that, on average, developing Asia-Pacific economies are expected to grow by 5.9 per cent in 2021 and 5 per cent in 2022, after having experienced an estimated contraction of 1 per cent in 2020. Despite a reasonably strong rebound expected in 2021, a “K-shaped recovery” is likely, with poorer countries and more vulnerable groups marginalized in the post-pandemic recovery and transition period.  The Survey estimates that because of the pandemic, an additional 89 million people in the region could have been pushed back into extreme poverty in 2020 at the $1.90 per day threshold, erasing years of progress in poverty reduction.  Working-hour losses in 2020 equaled 140 million full-time jobs, while severe disruptions of economic activity and education are likely to have caused a significant setback to human capital accumulation and productivity in the region. For a more robust and inclusive recovery, the Survey calls for a more synchronized COVID-19 vaccination programme across countries and highlights opportunities to leverage regional cooperation.  At the same time, it recommends that fiscal and monetary support should be sustained, as premature tightening could increase long-term scars.  “COVID-19 is a shock like no other and it requires a response like no other,” said Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of ESCAP.  “The time is now for the Asia-Pacific region to seize this opportunity to speed up and make its transition towards more resilient, equitable, and green development the centerpiece of the post-pandemic economic recovery.” Looking beyond the pandemic, the Survey examines the broader risk landscape facing Asia-Pacific countries, including epidemics, natural disasters and financial crises.  It finds that adverse shocks, both economic and non-economic, result in permanent economic, social and environmental losses, and advises countries to take a more comprehensive approach to building resilience against future shocks.  Specifically, the Survey proposes a “build forward better” policy package for resilient post-COVID-19 economies that aims to ensure universal access to healthcare and social protection, close the digital divide and strengthen climate and clean energy actions.  It estimates that the package would reduce the number of people living in poverty in the region by almost 180 million people and cut carbon emissions by about 30 per cent in the long run. Notably, the package would result in a modest fiscal and debt burden if accompanied by bold policy actions, such as ending fossil fuel subsidies and introducing a carbon tax.  Among other potential financing solutions, the Survey also recommends debt swaps-for-development initiatives for countries with special needs and those with limited fiscal space.  It also calls for international assistance to least developed countries burdened with significant “resilience gaps.”  For his part, United Nations Secretary-General Antonio Guterres has recommended in a policy brief on Preventing Debt Crises In the Era of COVID-19 and Beyond: The Time to Act is Now, that countries address immediate liquidity constraints; debt overhangs and creating space for investment in crisis response, the Sustainable Development Goals and climate action; and reformation of the international debt architecture. In conclusion, the Survey recommends that countries in the region should respond aggressively to adverse shocks to minimize the reversal of hard-won development gains. Swift and robust policy responses are needed to safeguard sustainable development in crisis times, and risk management must become central to development planning and policymaking.    Produced annually since 1947, the Economic and Social Survey of Asia and the Pacific is the oldest United Nations report on the region’s progress.  The Survey provides analyses to guide policy discussion on the current and emerging socio-economic issues and policy challenges to support inclusive and sustainable development in the Asia-Pacific region.  

South Korea has reported 386 new cases of the coronavirus in a resurgence that could force authorities to reimpose stronger social distancing restrictions after easing them in October to spur a faltering economy.

Thousands of micro, small, and medium enterprises (MSMEs), and millions of farmers across Asia and the Pacific will be benefited from the first phase of Covid-19 crisis response funding from the International Finance Corporation (IFC), a member of the World Bank Group. As the pandemic continues to send shockwaves through the global economy, IFC supported 13 companies in the region with $554 million in Covid-19 related funding in the fiscal year ending June 30 this year, said a press release. IFC deployed $492 million in Covid-19 related trade finance lines in the region. This has helped financial institutions provide liquidity to businesses dependent on trade, especially small and medium enterprises (SMEs). About 17,500 MSMEs and corporates in the region are also expected to be among the beneficiaries of IFC’s $2 billion Working Capital Solutions (WCS) programme in FY 2020.