ADB foresees BD’s continuation as fastest growing economy

It projects 8pc GDP growth in FY20

Economic Reporter :
The Asian Development Bank (ADB) on Wednesday projected 8 percent GDP growth in Bangladesh in the current fiscal year indicating that the country will continue as the fastest growing economy in Asia and the Pacific.
The multilateral lending agency attributed the growth to continued buoyant exports, robust private consumption with higher remittances, accommodative monetary policy, ongoing reform to improve business climate for private investment, and public infrastructure investment.
On the supply side, sustained strong growth in industry and agriculture are expected to be the main drivers of growth in FY2020, said the ADB.
“Bangladesh economy is in a good shape and is likely to continue to grow. At 8 percent growth in FY2020, ADB’s outlook indicates that Bangladesh is likely to continue as the fastest growing economy in Asia and the Pacific,” said ADB Country Director Manmohan Parkash adding that favourable trade prospects are expected to continue despite a weaker global growth.
Launching the Asian Development Outlook (ADO) 2019 Update at its office in the city, he said exports and remittances are likely to be further strengthened.
“Strong public investment due to continued policy environment and expediting implementation of large infrastructure projects are also envisaged. We see such momentum to continue in FY2020,” said the ADB Country Director.
Parkash said such strong performance and prospects are commendable, especially under the current situation and near term forecast of moderating growth in developing Asia.
To sustain this momentum in the medium- to long-term, the ADB Country Director said there are several challenges the country needs to overcome.
He said Bangladesh requires expanded industrial base, a diversified export basket, equitable development in urban and rural areas, and a sound financial system as the ADB indicated in the previous Bangladesh country chapters.
The ADB Country Director said the authorities must speed up reforms to improve the business environment for vibrant private sector development.
The implementation of the VAT law is a welcome development. However, the further expansion of tax base and promotion of efficient tax administration are required for improved resource mobilization, he said.
The ADB Country Director said Bangladesh also needs to further develop human capital to meet the growing needs from private sector.
He said such momentum needs to be sustained in the medium- to long-term to achieve its goal of becoming an upper middle-income country and high-income country.