Staff Reporter :
The Asian Development Bangladesh (ADB) has projected a 6.4 per cent GDP growth for Bangladesh in the current fiscal (2014-15), up from 6.1 per cent a year ago, as all major economic indicators are showing a sign of improvement.
This Manila-based multilateral donor came up with the forecast in its Asian Development Outlook Update (ADOU)- 2014 report released on Thursday.
Principal Economist of ADB Dhaka Office Mohammad Zahid Hossain presented the report at a press briefing held at its office in the city.
ADB country director Kazuhiko Higuchi was also present at the report launching ceremony.
“Bangladesh economy is expected to improve this fiscal year as all major economic indicators are showing a sign of improvement,” said Mohammad Zahid Hossain while presenting the report.
He added: We are very positive on Bangladesh’s growth this year although there are binding limitations in the economy.
Zahid Hossain, however, said that infrastructure constraints, inadequate supply of power, inability to mobilise resources and political unrest could dampen investors’ confidence and economic activities.
Replying to a query, he said, the investment scenario in Bangladesh has improved and the trend will continue in the second half of the current fiscal year.
The update report forecasts that the inflation is expected to decline to 6.5 per cent during the current fiscal from 7.4 per cent in the previous year.
“Import of capital machinery and raw materials are improving. The export growth of Bangladesh will also rise to 13 per cent in FY 15, up from 12 per cent in the FY14, with the momentum picking up in the second half,” he added.
The report said that the country’s remittance growth in the current fiscal is expected to accelerate to 7 per cent compared with 1.6 per cent decline in last fiscal.
It added that the agriculture growth will edge up to 3.5 per cent in this fiscal from 3.3 per cent in 2013-14 with continued policy support. The industry growth will improve to 9.2 per cent from 8.4 per cent on higher exports and stronger domestic demand. The services growth will also rise to 5.9 per cent in FY 15 from 5.8 per cent in the FY 14, the report further added.
