BD faces economic uncertainty due to upcoming polls: ADB

 
The Asian Development Bank (ADB) believes there is uncertainty in the economy of Bangladesh ahead of the 12th parliamentary elections to be held in January. At the same time, several other factors, including the crisis of power and energy, decline in exports and high inflation rate, are slowing down the economy.

For this reason, the ADB has lowered the GDP (gross domestic product) projection for Bangladesh. The ADB is assuming that the GDP of Bangladesh will be 6.2 per cent in the ongoing fiscal year.

The multinational agency published the December edition of the 'Asian Development Outlook' on Tuesday.
ADB stated that Bangladesh is facing economic uncertainty because of the upcoming election.

The ADB said in the report that the growth forecast for the fiscal ending 30 June has been lowered. However, there is no mention in the report as to how much has been lowered. Speaking to journalists, an official at ADB's Dhaka office said the GDP forecast for Bangladesh has been lowered to 6.2 per cent.

Earlier, ADB predicted a GDP of 6.5 per cent for Bangladesh in the current fiscal. Meanwhile, the government has set a target of 7.5 per cent this fiscal. The ADB has cited several reasons behind not being able to reach expected GDP including the economic slowdown in the destination countries of Bangladesh's product. According to the multinational agency, the economy of those countries has slowed down. As a result, Bangladesh is seeing a medium growth in export and production.

Apart from Bangladesh, the ADB has predicted a decline in the growth of Maldives.

The ADB assumes a further rise in the inflation rate of Bangladesh in the current fiscal. However, it didn't specify to what extent the inflation rate will rise. The ADB list of the countries likely to see a rise in inflation includes four countries - Kazakhstan, Myanmar, South Korea and Bangladesh.
The ADB said that among the South Asian countries, a high inflation rate is still prevailing in Bangladesh and Nepal.

Regarding the inflation in Bangladesh, the ADB said despite several initiatives of the government, the inflation rate remained near the two digit figure every month from July to October. ADB expects a more tolerable inflation rate in Bangladesh in the coming months only if the government continues with the contractionary monetary policy.

The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty in the region. Despite the region's many successes, it remains home to a large share of the world's poor: 263 million living on less than $1.90 a day and 1.1 billion on less than $3.20 a day.

ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

ADB maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through cofinancing operations that tap official, commercial, and export credit sources.

From 31 members at its establishment in 1966, ADB has grown to encompass 68 members—of which 49 are from within Asia and the Pacific and 19 outside.

ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.

A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality.

The Philippines capital of Manila was chosen to host the new institution, which opened on 19 December 1966, with 31 members that came together to serve a predominantly agricultural region. Takeshi Watanabe was ADB's first President.

During the 1960s, ADB focused much of its assistance on food production and rural development.