DHAKA: Asian Development Bank (ADB) on Thursday predicted that country’s rate of inflation is likely to decrease to 6.5 percent and the gross domestic product (GDP) will increase upto 6.4 percent in 2015.

The disclosure came from in a press conference on the update of ‘Asian Development Outlook 2014’ at its Dhaka office in the morning.

The bank hoped GDP would be increased at a rate of 6.4 percent in 2015, while it was fixed at rate of 6.1 percent in 2014, the bank told the press conference.

On the inflation, speaker said, Bangladesh’s existing inflation rate would decline to 6.5 percent from 7.4 percent in 2015.

ADB’s principal economist Mohhamad Zahid Hosain presented the keynote at the conference where ADB country director Kazuhiko Higuchi was present.

The report said the growth rate in the agricultural field would be 3.5 percent that was 3.3 percent in 2014.

According to ADB, growth rate in industry and services sector would be around 9.2 and 5.9 percent in 2015 that were 8.4 and 5.8 percent in 2014.

The report mentioned several challenges including adequate market, tax realization and proper expenditure of foreign currency and implementing projects, to continue in achieving the upwarding curve of the economy.

ADB economist Zahid Hossain said Bangladesh has the capability to achieve higher growth rate.

He further said we think the government should try to produce more electricity than the current production of over 7,000KW as this amount is not enough.

He added: “Day in day the demand of electricity is rising. GDP would rise if government produces over 15,000KW electricity a day.”

Zahid Hossain also said many countries invest over 40 percent of their GDP; Bangladesh also has that chance; the GDP would rise in proportion to the infrastructural improvement.

About inflation, he said, “We expect the inflation rate to be decreased in the next year (2015); in our evaluation, food prices are in a status quo; on the other hand, prices of other goods except food are also declining.”

Bangladesh Bank’s monetary policy also will help in declining the inflation rate, he added.

In response to a question, economist Zahid said the government should pay more attention to implementing the projects that would help in attaining GDP over 7 percent.

He also observed that the political situation developed a lot than earlier times.

He also forecast that the GDP of Bangladesh in 2015 would be higher than India who would have a 6.3 percent GDP.

BDST: 1655 HRS, SEP 25, 2014