CDP Monitoring Reports 2022 - Bangladesh

Bangladesh achieved robust economic growth, between 6-8% annually during 2015-2019, and a positive growth of 3.5% in 2020, despite the COVID-19 pandemic. Government balance decreased by 5.5%, Taking active responses to the COVID-19 pandemic to protect the living conditions of the population. Debt to GDP ratio rose to around 40%, which may necessitate development financing for the near future. The CDP found the Government of Bangladesh is well placed and ready to prepare and implement the smooth transition strategy. The commitment and progress shown to date are commendable. Subgroup suggests Bangladesh’s STS should give greater attention to accelerating structural transformation within sectors, as well as across sectors. R&D, technology learning, innovation, and digitization need to be prioritized. Domestic value chains should be promoted, and productive capacity should be developed further, particularly in the areas of human capital and institutional strength. On the external sectors, diversifying destination markets of expert sector is recommended, while negotiations with trading partners on smooth transition should continue as a premature loss of preferential market access to key export markets may result in setbacks for a sustainable graduation. CDP should recommend ECOSOC to call for international community to continue providing technical and financial assistance to Bangladesh to minimize possible negative impacts of the graduation on exports.