Bangladesh’s GDP growth is set to hit 8 percent at the end of current fiscal based on the continuing positive trend in exports and public investments, the Asian Development Bank, or ADB, has said.
The ADB makes the prediction in its annual publication titled ‘Asian Development Outlook 2019’, or ADO 2019, after
Asian Development Bank’s Country Director for Bangladesh Manmohan speaks at a media conference marking the launch of the bank’s flagship publication, ‘Asian Development Outlook 2019’ in its Dhaka office. Photo: Asif Mahmud Ove
Manmohan Parkash, the ADB’s country director for Bangladesh, highlighted various aspects of the report at a media briefing in the institution’s Dhaka office.
According to the report, the GDP of Bangladesh is expected to grow by 8 percent in 2019-2020 with robust private consumption, increased public investment, strong export performance, and expansion in industries.
Asian Development Bank’s senior economist
“To sustain this momentum in the medium to long-term, Bangladesh requires expanded industrial base, diversified export basket,
“Continued focus on prudent macroeconomic policies, sound debt management, strengthening the banking sector, removing infrastructure constraints, and reducing the cost of doing business are important to help achieve the long-term development vision of the country.”
Though the ADB predicts a slightly lower rate of GDP growth than the government, the figure is higher than the lender’s previous projections.
Bangladesh’s GDP growth was 7.86 percent in the past fiscal year while the per capita income was $1,751.
Bangladesh’s economic growth crossed 7 percent in fiscal 2015-2016 after almost a decade in the region of 6 percen.
Asia to lose momentum
Growth in developing Asia could slow for a second straight year in 2019 and lose further momentum in 2020, the Asian Development Bank (ADB) said on Wednesday, warning of rising economic risks from a bitter Sino-US trade war and a potentially disorderly Brexit.
Developing Asia, which groups 45 countries in the Asia-Pacific region, is expected to grow 5.7 this year, the ADB said in its Asian Development Outlook report, slowing from a projected 5.9 percent expansion in 2018 and 6.2 percent growth in 2017.
The 2019 forecast represents a slight downgrade from its December forecast of 5.8 percent. For 2020, the region is forecast to grow 5.6 percent, which would be the slowest since 2001. “A drawn out or deteriorating trade conflict between the People’s Republic of China and the United States could undermine investment and growth in developing Asia”, Yasuyuki Sawada, ADB’s chief economist, said in a statement.
The lender also cited uncertainties stemming from US fiscal policy and a possible disorderly Brexit as risks to its outlook because they could slow growth in advanced economies and cloud the outlook for the world’s
China’s economy will probably grow 6.3 percent this year, the ADB said, unchanged from its December projection, but slower than the country’s 6.6 percent expansion in 2018. Growth in the Chinese mainland is projected to cool further to 6.1 percent in 2020. China has set its 2019 economic growth target at 6.0 to 6.5 percent.
By region, South Asia will remain the fastest growing in
From an estimated 7.0 percent growth in 2018, India’s economy is projected to expand at a faster pace of 7.2 percent in 2019 and 7.3 percent in 2020, the ADB said, as lower policy rates and income support to farmers boost domestic demand.
This year’s growth forecast for Southeast Asia was trimmed to 4.9 percent from an earlier estimate of 5.1 percent, as the Manila-based lender expect Malaysia, Singapore, Philippines
Citing stable commodity prices, the ADB lowered its average inflation forecast for developing Asia to 2.5 percent this year from 2.7 percent previously, and it is expected to remain subdued at 2.5 percent in 2020.