ADB projects 6.4 pc growth for Bangladesh

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The Asian Development Bank has projected a 6.4 per cent for Bangladesh in the current fiscal year (2014-15), against 6.1 per cent in the the previous fiscal.

The bank in its economic outlook-2014 on Bangladesh came up with the projection of GDP growth while it forecast that inflation would come down to 6.5 per cent from 7.4 per cent in the 2013-14 fiscal year.

The bank officials in Dhaka at a press conference said the export growth of the country would be 13 per cent which was 12 per cent in the current fiscal year.

Mohammad Zahid Hossain, ADB Principal Economist in Bangladesh, came up with the projection while presenting an update report of the Asian Development Outlook 2014 at a press briefing at its residence office in Dhaka.

ADB country representative Kazuhiko Higuchi also was present at the press meet.

Bangladesh had achieved 6.1 per cent growth in FY14 while the annual inflation was 7.4 per cent in the fiscal 2013-14.

Commenting on the country’s economy as a whole, Zahid said overall investment scenario of the country has been improved, which would be continued in the second-half of the fiscal.

“Most economic indicators are positive and Bangladesh has very good potential,” he said adding improvements in wages, working conditions, labour rights and safety standards will enhance the buyers’ confidence in garment sector and that leads to boost exports.

The ADB said the country’s remittance growth would rise to 7 per cent, as the trend of remittance inflow is seen robust.

“Improved remitting systems, lower transaction cost and more stabled political environment would help boost inflows,” observed ADB.

The import growth in the current fiscal year is projected to be 15 per cent, up from 8.9 per cent in FY14.’Petroleum imports will go up, as fuel for power plants needed to improve to ensure supply’.

The country’s agriculture growth will edge up to 3.5 per cent in this fiscal year (3.3 per cent in FY14) with continued policy support, while the industry growth will improve to 9.2 per cent (8.4 per cent in FY14) on higher exports and stronger domestic demand, supported by a rise in remittances.

The services growth will rise to 5.9 per cent (5.8pc in FY14) with higher growth in industry and agriculture, a pick-up in external trade and a rise in domestic demand, said ADB outlook.

Source: Newsnext

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