ADB expects 7pc GDP growth

The Asian Development Bank expects Bangladesh's economy to expand by 7 percent in the current fiscal year, much below from the government's provisional estimate of 7.65 percent. 

Meanwhile, the World Bank has put the figure at 6.5 percent. Asian Development Outlook-2018 revealed by the ADB at a press conference in Dhaka yesterday said the country's gross domestic product (GDP) will be 7.2 percent in the next fiscal as its economy looks to be in a very good shape.

ADB Country Director Manmohan Parkash said: "Bangladesh's economy appears to be in a good shape and likely to continue to grow." He said, "Bangladesh's economy is going through a balance. The country's macroeconomic development is also in good condition. Revenue deficit is less than the estimated target."

Speaking at another news briefing, Planning Minister AHM Mustafa Kamal said the 7.65 percent GDP growth has been estimated following the calculation of nine months' performance. The growth will finally exceed 7.65 percent after the end of the fiscal year.

The minister said, "The macroeconomic trend of Bangladesh is going upwards." Welcoming the questions of World Bank of increase growth rate, the Planning Minister said, "They did not reject the calculation of our growth projection, they just raised some questions. We also have answers to their queries."

In its outlook ADB said despite the slowing down of export expansion and decline in the remittance growth in the last fiscal year increased. Inflation trend declined. But the deficit increased. Despite the slowdown in agriculture and services sector of the current fiscal year, good economic growth will be excellent. But this time the deficit will increase further. 

According to the ADB, the overall inflation in the current fiscal year will rise to 6.1 percent, which was 5.4 percent in the last fiscal year. As for the reason for the rise in inflation, it has been said that the increase in prices of oil and other essential commodities prices will increase in the international market. Due to the combination of natural gas, electricity prices and the depreciation of the money, the current fiscal year inflation will increase. Besides, the overall inflation in the next fiscal year will be increased to 6.3 percent.

There is also a shortage of labor and technology to bring diversification of production in Bangladesh. ADB has urged to take appropriate initiatives in this field to compete in the competition. All trade segments are concentrated in Dhaka and Chittagong but it needs speeding up and make a balance all over the country for better economic performance of the country, ADB recommended.

According to the ADB, Asia's growth will be 6 percent in the current fiscal year and it will fall to 5.9 percent in the next fiscal year. Besides, the inflation rate in Asia is in progress and is estimated to grow to 2.6 percent in the next fiscal structure.