Economic prospects bright in 2018
According to the United Nation's (UN) World Economic Situation and Prospects 2018 report launched on December 14, Bangladesh is set to be one of the fastest growing least developed countries (LDCs) in 2018. The report states: "The Bangladesh economy is set to continue expanding at a rapid pace, underpinned by strong domestic demand, especially large infrastructure projects and new initiatives in the energy sector." This is welcome news indeed. It has been estimated that the GDP growth rate will be 7.1 percent in 2018 and 7.2 percent the year after. The country's focus on infrastructure development over the years appears to be paying off. That Bangladesh is breaking the six-plus percent growth threshold means that the economy is on the right track.
While Bangladesh appears set for the near and mid-term economic development goals, the country will have to put special emphasis on economic diversification, reducing inequality, supporting long-term investment and tackling institutional deficiencies are the four areas that need to be addressed. In our case, institutional deficiencies are a major sore point and economic diversification also needs special emphasis. The need for export market diversification for the RMG sector has been talked about for years but is not happening fast enough. Institutions remain hamstrung by red-tape, undermanned and not staffed by the right type of professionals. Given the relative macroeconomic and political stability we enjoy today, there is ample opportunity to address these areas to sustain higher rates of economic growth.
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