Bangladesh’s GDP growth to scale 8%in FY19, says ADB

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 analysing the state of the Bangladeshi economy.

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 Soon Chan Hong 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

“To sustain this momentum in the medium to long-term, Bangladesh requires expanded industrial base, diversified export basket, improved business environment for vibrant private sector development, expanded tax base, better revenue collection for increased resource allocation, and human capital development,” said Manmohan Parkash.

“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.

After analysing the data for the first eight months of the current fiscal year (July-February), the Bangladesh Bureau of Statistics estimated a record economic growth of 8.13 percent at the end of the fiscal year 2018-2019.

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 percent.