Bangladesh clocks fastest growth rate in Asia-Pacific, ADB says

The Asian Development Bank or ADB has put Bangladesh on top in terms of speed of growth among 45 Asia-Pacific nations.

The country's growth accelerated in fiscal year 2018 on higher public investment and stronger consumption demand with a revival in exports, the agency says.

The Asian lender’s Country Director Manmohan Parkash handed its Asian Development Outlook 2019 report to Prime Minister Sheikh Hasina in Dhaka on Wednesday.

Her press secretary Ihsanul Karim briefed the media about the report and the meeting.

Hasina told Parkash about her government’s efforts to take Bangladesh forward economically in a planned way, Karim said.

She also mentioned the dream of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman to cut the poor-rich inequality.

“We are working to achieve this goal,” Karim quoted her as saying.

Parkash praised the government’s efforts under Hasina’s leadership, the press secretary said.

Principal Secrtary Nojibur Rahman and Finance Secretary Abdur Rouf Talukder were also present.

ASIAN DEVELOPMENT OUTLOOK 2019

GDP growth accelerated to 7.9 percent in fiscal year 2018 from 7.3 percent in the previous year, as rising growth in total demand found support in higher consumption, investment, and exports, according to the report.

“Continued political calm, improved power supply, and higher growth in private sector credit facilitated the fastest economic expansion in Bangladesh since 1974,” it added.

The government has targeted 8.2 percent growth in the upcoming financial year starting from July 1, but the ADB has forecast 8 percent growth, which will also be a record. 

Bangladesh’s strong growth will help South Asia remain the fastest-growing subregion in the world, projected by the ADB to grow by 6.8 percent in 2019 and 6.9 percent in 2020, led by Bangladesh at 8 percent in both years.

In contrast, Pakistan’s outlook is for a sharp drop in growth as, following a pronounced widening of its balance of payments deficit in 2018, it likely embarks on austerity measures supported by the International Monetary Fund.

For Bangladesh, the ADB says growth is expected to be “slightly higher” in both fiscal 2019 and 2020 on slowing in major trading partners.

The current account deficit is forecast to shrink, and inflation to stay in check.

To sustain higher investment and growth, the banking system requires strengthening reform, the ADB report said.

It also warned failure to boost revenue could crimp expenditure pledged for implementing priority projects.

Failure to improve governance, the investment climate, and infrastructure could undermine other development achievements, the report added.