ZCZC
BSS-16
BANGLADESH-ADB-ECONOMY
Bangladesh economy is in good shape: ADB
DHAKA, Sep 26, 2018 (BSS) – Country Director of Asian Development Bank
(ADB) Manmohan Parkash today said the economy of Bangladesh is in a good
shape and it is possible to attain 8 percent growth rate in the current
fiscal since the country has a very strong foundation.
“Bangladesh economy is in a good shape and its growth momentum is likely
to continue. It has recorded over 7 percent GDP growth for three consecutive
years, reaching close to 8 percent now,” he said while launching the Asian
Development Outlook 2018 Update at ADB Resident Mission office in the city’s
Agargaon area.
ADB senior economist Soon Chan Hong and principal country specialist
Jyotsana Verma made a power-point presentation on the Outlook Update and the
overall operations of the ADB in Bangladesh.
About Bangladesh’s prospect of attaining 8 percent GDP growth in the
current fiscal based on the solid foundation of 7.9 percent GDP growth rate
in the last fiscal, Parkash said: “Yes, it is indeed possible. We already
have a very strong foundation and we are getting very close to it. But, it
means you also need to continue prudent macroeconomic policies, good debt
management and investing in human capital and new technologies”.
He assured that the ADB would continue to provide both financial and
technical support to Bangladesh in these areas.
“In terms of getting to 8 percent growth, it is possible. But, definitely
you need to continue with the same kind of policies and same kind of
environment. Again, the ease of doing business needs to be really supported
much more so you can attract higher FDI (foreign direct investment) and
higher private investment,” Parkash said.
According to the ADO 2018 Update, the GDP growth rate in the current
fiscal is expected to grow by 7.5 percent against the fiscal target of 7.8
percent with continued strong consumption and public investment.
Besides, the export performance is expected to remain steady although
expansion in import is likely to be slower. On the supply side, strong
industrial growth is likely to continue and contribute to the stable growth.
The ADO 2018 Update showed that the country’s GDP growth increased to 7.9
percent in fiscal 2017-18, remarkably up from 7.3 percent in fiscal 2016-17.
On the demand side, acceleration in private consumption and continued growth
in public infrastructure investment contributed to higher GDP growth. Private
investment as a large share of total investment, also contributed to the
growth.
On the supply side, growth was driven by expansion in agriculture and
industry. Growth in services was slower due to slower growth in transport,
financial, education and health services.
The country’s macroeconomic management was sound, inflation edged up to
5.8 percent in fiscal 2017-18 from 5.4 percent a year earlier and fiscal
deficit was within the budget target, although the current account deficit
widened.
The ADB Country Director said in case of the story in Bangladesh, the
country started form a very low base, but it has done very well over the last
few years.
“Over the last 10 years, the growth continued quite robust and some good
policies also came in. Some good institutions were set up. We have seen
growth in both public investment and in private investment…if private
investment can increase and can go faster, this economy can definitely grow
more,” he said.
MORE/ASG/GM/MRI/1500 hrs