ZCZC
BSS-21
BANGLADESH-ADB-ECONOMY, TWO LAST
Parkash said the Manila-based lending agency now have an active portfolio
of US$ 9.5 billion to support physical and social infrastructures and human
resources development in Bangladesh.
“In 2018, we expect new approvals and commitments of over US$ 2 billion.
Our current contract awards and disbursement performance are also
significantly higher than last year,” he said.
Asked whether the activities centering the upcoming general election will
put impact on the country’s economy, the ADB Country Director said he does
not feel it would have such impact on economy mainly for three reasons –
strong macroeconomic policies, good business environment and the country’s
people who are looking forward to this election.
“So, if you have a stable economic performance, if you have participatory
polls, if you also have an environment where people are looking towards this
election, then you will have minimal impact and probably after the election,
we may have another record year of performance. So, it’s good for the
economy,” he added.
Replying to another query, Parkash said in addition to the US$ 100 million
emergency grant for forcibly displaced Rohingya people in Cox’s Bazar, the
ADB has provision for another US$ 100 million grant and it will largely
depends on how the first US$100 million gets implemented.
“The progress on the first US$ 100 million emergency assistance project is
very good…we are hopeful when we will be in a position to implement the
first project, we will then go to our donours to get another US$ 100 million
assistance,” he said.
Replying to another question, the ADB Country Director said everyone
should see the US-China trade war as an opportunity rather than a challenge
as it would open up markets.
“And Bangladesh can offer that competitive market as the country has a
very good wage structure. But, for that you need a lot of investment and
that’s why public and private investment is very much necessary,” he said.
The ADO 2018 Update for FY19 projects continued high growth, moderately
higher inflation and a slight narrowing of the current account deficit. It
said Bangladesh achieved its fastest economic expansion in fiscal 2017-18
since 1974 as GDP growth reached 7.9 percent, a marked improvement from a
year earlier.
Growth was led by a steep rise in private consumption as remittances
recovered and by higher public investment, which increased to the equivalent
of 8 percent of GDP from 7.4 percent a year earlier.
The ADO 2018 Update is also subject to downside risks, notably from
inability to rein in import demand as projected, failure to mobilise
appropriate financing to cover the large projected current account deficit,
an unexpectedly large increase in global oil prices, or unfavorable weather.
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