ZCZC
BSS-46
BANGLADESH-GROWTH-ADB
Bangladesh GDP growth surpasses ADB forecast in FY18
DHAKA, July 19, 2018 (BSS)-Economic growth in fiscal year 2018 (FY2018) in Bangladesh surpassed Asian Development Outlook 2018 forecasts as agriculture growth was higher than expected, according to Asian Development Bank (ADB).
Agriculture growth was higher than expected in Bangladesh as the authorities offset flood-induced losses to the summer and monsoon rice crops by quickly extending seedlings and other support services to farmers, said ADB in a supplement to its ADO 2018 report released last April.
Bangladesh achieved 7.65 percent growth in FY18, whereas the ADB projected that the growth would be 7.0 percent.
The Manila-based international lender organization said the outlook in South Asia continues to be for a robust economy, with growth on track to meet ADO 2018 forecasts of 7.0 percent for 2018 and 7.2 percent for 2019.
South Asia continues to be the fastest growing sub region, led by India, whose economy is on track to meet fiscal year 2018 projected growth of 7.3 percent and further accelerating to 7.6 percent in 2019, as measures taken to strengthen the banking system and tax reform boost investment.
In both Pakistan and Bangladesh, agriculture recorded notable improvement over the last year, surpassing expectations and driving growth. Industry growth was in South Asia higher on stronger performances in manufacturing and construction.
Growth in Asia and the Pacific’s developing economies for 2018 and 2019 will remain solid as growth continues apace across the region, despite rising tensions between the United States and its trading partners, said the ADB).
“Although rising trade tensions remain a concern for the region, protectionist trade measures implemented so far in 2018 have not significantly dented buoyant trade flows to and from developing Asia,” said ADB Chief Economist Yasuyuki Sawada.
“Prudent macroeconomic and fiscal policymaking will help economies across the region prepare to respond to external shocks, ensuring that growth in the region remains robust,” he added.
The report now projects lower inflation for developing Asia at 2.8 percent for 2018 and 2.7 percent for 2019. Domestic factors, including central bank intervention to avoid sharp currency depreciations, and the reintroduction of food and fuel subsidies to contain the effects of rising commodity prices in some economies, helped contain inflationary pressures.
BSS/PR/TAN/MMA/1812hrs