This year, GDP growth could be 6.9 percent

This year, GDP growth could be 6.9 percent

The Asian Development Bank (ADB) has forecast that the growth of gross domestic product (GDP) could be 7.9 percent in the current financial year. In the current financial year, the donor organization expects to increase the expenditure through the budget as well as private investment. This will lead to higher growth, the ADB said. The ADB says GDP growth could increase to 7.1 percent in the next fiscal year.

ADB has released the Asian Development Outlook 2022 on Wednesday. There is a forecast for the growth of Bangladesh. On this occasion, an online press conference was organized at ADB’s Dhaka office. There, ADB Senior Country Specialist Sun Chang Hong highlighted various aspects of the Asian Development Outlook. ADB Country Director Edimon Ginting also spoke.

ADB sees high inflation as a new challenge in the current global and domestic context. The ADB has forecast that inflation could rise to an average of 6 percent in the current fiscal year. This high inflation is putting pressure on the economy. Inflation is mainly due to rising prices of fuel oil and daily necessities. In addition, the current global situation is affecting the domestic market. Especially the Russia-Ukraine war.

• ADB Country Director Edimon Ginting said Bangladesh has also achieved significant GDP growth in the context of COVID-19. Bangladesh is moving towards high growth again. According to him, Bangladesh needs to emphasize three issues. First, Bangladesh needs to create not only growth but also employment opportunities. Second, more emphasis needs to be placed on education and health. Third, the challenges of climate change must be addressed.
• In a country like Bangladesh, tax collection is difficult, but not impossible. In a country like Bangladesh, political will is needed to reform revenue collection management. Sun Chang Hong, Senior Country Specialist, ADB
• Asked what Bangladesh should learn from Sri Lanka, Edimon Ginting said a strong policy must be adopted. Weak policies cannot be adopted. Apart from this, if there is effective revenue management, it is possible to deal with any injury. For example, emphasis should be placed on extracting resources from internal sources, which helps to sustain the economy.

ADB Senior Country Specialist Sun Chang Hong thinks that in a country like Bangladesh, tax collection is difficult, but not impossible. In a country like Bangladesh, political will is needed to reform revenue collection management.

ADB Outlook further said that the average growth in Asia this year could be 5.2 percent. It may increase to 5.3 percent next year. In addition, the ADB has forecast 7.5 percent GDP growth in India and 3.8 percent in China this year.

Photo: Collected