Asian Development Bank (ADB) in its 2021 update has predicted the expected economic growth to hit 4% in the financial year 2022 (FY22). The business activities successfully continued in the second year of the coronavirus pandemic and the economy is likely to recover by the next year with the support of solid private investments, strong economic stimulus measures for 2002, and steady vaccine operation.
Moreover, the report also predicts the inflation to slow down by 7.5% in the next year which has not changed by the last year’s projection. The projection depended upon supply chain enhancement, moderating food prices, and the government’s Agriculture Transformation Plan. For other goods, the prices are expected to moderate as well from the tax relief budget of FY2022.
For the last year, inflation had declined to 8.9%. Food prices of the were set to remain high owing to supply chain disruptions, wet monsoon, and the hike in wheat and sugarcane price.
Do you think it is a good omen for the economy of the country?