The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) yesterday projected the economy of Bangladesh to grow 6.4 percent in 2011.
"The expected growth is to be supported by improved growth in the agricultural sector, recovery in export growth with diversification into new markets, including the emerging economics, and an improved situation in power and gas supplies," said a survey by ESCAP styled Economic and Social Survey of Asia and the Pacific 2011.
The report was launched at an event at the Cirdap auditorium. The report was simultaneously published in 31 cities across the region.
Clovis Freire, one of the authors of the report, presented the report. Mustafa Kamal Mujeri, director general of Bangladesh Institute of Development Studies (BIDS), Kazi Ali Reza, officer-in-charge of United Nations Information Centre in Dhaka, also spoke.
Mujeri said the economy of Bangladesh demonstrated considerable resilience despite the global economic crisis, as its GDP grew by 5.8 percent in 2010 on top of the 5.7 percent growth achieved in 2009.
The survey also projected 9.5 percent GDP growth for China in 2011, 8.7 percent for India and a 2.8 percent for Pakistan.
According to the survey findings for Bangladesh, Mujeri pointed out some upcoming challenges that include turning sustained recovery into high economic growth; creating capacity to address multiple structural imbalances and large socioeconomic and development gaps; removing key infrastructural gaps and serious ecological imbalances; and gaining dynamism from inclusive growth.
The BIDS chief said like Asia and the Pacific region, Bangladesh also needs to continue to pursue economic reforms to improve productivity, strengthen public institutions, improve economic governance and build social safety nets to protect the more vulnerable segments of the population.
He said the budget deficit situation may deteriorate in the current fiscal year, as the government attempts to tackle a complex array of problems, ranging from a shortage of power, gas and water.
The former chief economist of the central bank also cautioned the government to keep a look out, as there may be pressures on the current account balance and reserves.
Mujeri termed electricity as one of the biggest challenges for Bangladesh and several countries. He also said both short-term and long-term measures are needed to tackle the shortage.
Promotion of regional cooperation in the energy sector can benefit the participating countries enormously, he added.
He said providing subsidies, following the pattern of food stamps, electricity stamps or coupons, could be given to the poor to help pay electricity bills.
Freire said the Asia-Pacific developing economies are projected to grow at 7.3 percent in 2011, down from the 8.8 percent in 2010.
He said the survey considers how to improve regional connectivity and also indicates how the least developed countries can take advantage of this by increasing their productive capacities.
The Brazilian said due to higher food and energy prices, up to 4.2 crore people across the region may remain in poverty in 2011, in addtion to the 1.9 crore people already affected.
Source: The Daily Star (May 5, 2011)
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