While World Bank is saying Bangladesh gross domestic product (GDP) will be 6.5 to 7 percent during the FY18-20, Asian Development Bank (ADB) is unbolting something different expectation. According to ADB, Bangladesh’s GDP will be 7 percent in the current fiscal year (2017-18) and 7.2% in the next fiscal year as its economy looks to be in a very good shape. On the other hand, Bangladesh Bureau of Statistics (BBS) projected 7.65 percent GDP growth for this FY.
“Bangladesh’s economy appears to be in a good shape and likely to continue to grow. The GDP growth is expected to grow by 7 percent in FY 2018 with continued strong consumption and public investment,” said ADB Country Director Manmohan Parkash.
Manmohan Parkash said, “We can debate over whether it is 7.1, 7.2 or 7.3 or 7.4 percent. The number difference is not the main issue. The main question can be whether the Bangladesh economy is well, and the simple answer it’s doing well and it’s expected to continue to do well.”
Asian Development Outlook-2018 revealed by the ADB on 11th April. The flagship report of the ADB also said the inflation is projected to rise in FY 2017-‘18 to 6.1 percent from 5.4 percent in FY 2016-17 due to higher global prices for oil and other commodities, upward adjustments to natural gas and electricity prices and likely take depreciation.
According to the report, Bangladesh has good potential in several industries such as leather and footwear, light engineering, electronics, pharmaceuticals, jute products and software and other information and communication technology products.
A larger part of productivity gains come from technological advances within sectors, such as high-yielding crop varieties in agriculture, modern machine tools in manufacturing, and information and communication technology (ICT) in services.
“Diversifying exports away from readymade garments and promoting labour intensive manufacturing would help expand industry and underpin continued high economic growth”
– ManmohanParkash, Country Director,ADB
The ADB country director said Bangladesh has significantly reduced the poverty level and extreme poverty. ‘Bangladesh now needs more policies to improve its human capital and their skill development for getting success further in reducing poverty.”
He also said the skill development is an effective way to bring the poorest of the poor into the mainstream. “It’s very crucial for reducing poverty.”
Airing hope that the election will be held in the country this year in a peaceful manner, Parkash said the continuation of policy and political stability are the important factors to get higher growth.
About the disorder in banking sector here, he said the country needs a mechanism to have a proper credit risk assessment system and follow the international banking practices alongside good governance in bank management to overcome it. “The private sector should make efforts and play a key role in this regard.”
He congratulated Bangladesh on attaining the eligibility for the graduation from the least developed country status and said the LDC graduation will open up new opportunities like access to resources from the international capital markets and larger inflows of foreign direct investment.