DHAKA: The Asian Development Bank (ADB) projected Bangladesh's economic growth at 6.7 percent in the current fiscal year.

The ADB in its ‘Asian Development Outlook (ADO) 2015 Update’ released on Tuesday said Bangladesh's gross domestic product (GDP) would grow at 6.7 percent in 2015-16 financial year (FY) and inflation rate at 6.2 percent.

This Update ADO also projected 6.2% for average inflation in FY2016 for Bangladesh, matching the central bank’s monetary policy statement.

Regarding the prediction, ADB Country Director Kazuhiko Higuchi, made the assertion at a press conference held at ADB office in city’s Agargaon area.

According to him, Bangladesh is now apparently a politically stable country. Private sector is flourishing. The condition of readymade garment industries is also better now.

ADO-2015 Update theme was ‘Enabling Women, Energizing Asia’.

Export growth in FY2016 is projected to improve to 6.0% as economic growth in the eurozone area and the USA strengthens.

Imports are projected to increase by 13.0%, mainly in capital goods, industrial raw materials, and food grains, the global lender also predicted.

The ADB further said that remittance inflows are likely to grow by 9.0% as the government steps up efforts to place workers overseas.

“Bangladesh also has been advancing in infrastructure, transport and education. So, in these circumstances we forecast that Bangladesh may achieve 6.7 percent GDP growth in 2015-16,” he added.

He said communication system in the city has improved a lot. Many flyovers have been constructed and are under-construction. Transport sector is gradually being improved.

Higuchi said, especially communication system such as Dhaka-Chittagong highway has been upgraded to four lanes.

Moreover, railway, highway and regional connectivity have improved. Bangladesh is also ahead in linking up with the neighboring countries.

In response to a question, that how it is possible to progress in the garment sector despite cancelation of GSP (Generalized Scheme of Preferences), he said Bangladesh RMG has earned reputation in eurozone and fresh market despite GSP cancelation.

“For new pay scale, production will increase with internal demand as well. So inflation rate will be at 6.2 percent in 2015-16 fiscal,” ADB Bangladesh office’s chief economist Mohammed Parvez Imdad told the media.

The government predicted a 7 percent GDP growth in the 2015-16FY budget.

BDST: 1232/1610 HRS, SEP 22, 2015
RS/RR/SMS