ADB projects 8% GDP growth for Bangladesh, while the World Bank predicts a more cautious 7.3%
Within the span of two days, two global economic powerhouses have pronounced very positive forecasts for the Bangladesh economy.
However, their growth projections are somewhat different for the country, and that puts Bangladesh at the top of growing Asian economies by Asian Development Bank’s account, and in the third place after Bhutan and India by World Bank’s account.
ADB projects 8% GDP growth for Bangladesh, while the World Bank predicts a more cautious 7.3%.
The government's own estimate lies further beyond both of these, with the Bangladesh Bureau of Statistics predicting an 8.13% GDP growth for FY2019-20.
Among the key differences in these forecasts is that World Bank sees a far more optimistic outlook for Bhutan than does ADB, and that ADB has significantly lowered its forecast for India.
The World Bank has also warned about weak private sector investments in Bangladesh. The ratio of Foreign Direct Investment to GDP is less than its competing countries.
ADB on the other hand predicts that private investment will rise, supported by reform and development initiatives, and forecasts a better and sustained export growth, buoyed by the trade war between US and China.
Both the banks have expressed concern over the rise of non-performing loans in the banking sector.