ADB cuts Bangladesh GDP growth to 5.8pc
Asian Development Bank (ADB) has lowered down Bangladesh’s economic growth outlook significantly for the current fiscal year, citing political uncertainty and weakening exports, and consumer and investment demand.
ADB's Asian Development Outlook Update (ADOU) 2013 estimates that gross domestic product (GDP) growth in Bangladesh will be just 5.8 percent in fiscal 2013-14, down from the government’s projection at 7.2 percent.
“Exports and consumer and investment demand will not be as buoyant as expected earlier because of political uncertainty that prompts people take a cautious approach,” Mohammad Zahid Hossain, principal economist of ADB’s Dhaka office told journalists at the report launching ceremony.
Bangladesh’s GDP grew by 6 percent in 2012-13, 6.2 percent in 2011-12 and 6.7 percent in 2010-11.
The annual Asian Development Outlook (ADO), launched in April, presented an analysis of developing Asia's economic performance plus its prospects and the Update revisits the analysis and projections made in ADO taking into account the latest national and international economic developments.
M Teresa Kho, country director of ADB, said to grow more rapidly, Bangladesh needs to attach higher priority to enhancing its business climate, improve infrastructure and trade logistics and address skills shortages.
She also said land shortage is emerging as a key constraint on infrastructure and industrial development.