Although the WB projected a 2.6% decline in private consumption, it however predicted a 8.4% rise in public consumption. The global lender made the forecast in its “Global Economic Prospects, June 2020”, which focused on South Asian nations in the wake of the Covid-19 pandemic, released on June 30, 2020. “The Covid-19 pandemic has sharply weakened consumption and manufacturing activity, and has damaged the tourism and other services industries across the South Asia region. The deterioration in domestic conditions, together with spillovers from a global economic contraction, is expected to result in an output contraction of 2.7% in 2020,” said the report. Across the region, pandemic mitigation measures will severely hinder consumption and services activity, while high uncertainty about the pandemic will constrain private investment.

Source: Dhaka Tribune July 08, 2020 05:03 UTC