Rising oil price in the international market, high inflation rate, continuous devaluation of Taka (Bangladeshi currency) against US dollar- have all of these problems. Yet, according to ADB, the trend for GDP growth of Bangladesh is positive. In the current fiscal year (ending in June 2006), Bangladesh will have a GDP growth of 6.5%- this is the prediction of ADP for Bangladesh. Two factors are supporting Bangladeshi economy- growth in the service and industry and growing flow of remittance sent by Bangladeshis working around the world.
ADB has predicted that in the next fiscal year (July 2006-June 2007), the economic growth will slow down to 6.0%. ADB has blamed possible political instability because of the next general election- expected to take place on December 2006 or January 2007. ADB has called on the Bangladeshi government to focus more on the development of infrastructure. ADB has predicted that foreign direct investment (FDI) may increase substantially in the next fiscal year. And if FDI really increases than the slow down in the GDP growth may be averted in the next fiscal year.
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