ADB estimates GDP growth at 6.2pc

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The Asian Development Bank (ADB) has estimated the GDP growth at 6.2 per cent for FY 2008, the lending agency said in its Quarterly Economic Update of Bangladesh released Thursday, reports bdnews24.com.
Curbing inflation would be a key challenge, the report said, warning that Bangladesh Bank's accommodative monetary policy would fuel inflation if bank credits were not directed to the economy's productive sectors.
According to the ADB, food inflation rose to 12.3 percent in July from 11.1 per cent in January 2008 while non-food declined to 6.3 per cent from 11.4 percent during the same period.
The report however, said that inflation on a point-to- point basis, declined to 10 percent in June from 11.4 per cent in January this year.
Revenue collection in FY 2008 recorded 1 percentage point higher growth compared to that of the previous year, which has been strongly aided by the interim government's tax reform measures, the report said.
Meanwhile, the industry sector growthe transmission and distribution networks to keep up with the fast growth in electricity demand.
The ADB report recommended expediting exploration for new gas fields as gas supply shortages threaten in adding to generation capacity.
It also suggested formulation of the national e-governance strategy and implementation of the national information and communications roadmap for timely progress in the ICT sector.