Bangladesh is passing through the most critical time in its 36-years history, said Asian Development Bank (ADB)`s
country director Hua Du. `Really the post-cyclone period following twin
floods is very hard for Bangladesh`, she told reporters Monday at the launch of
Quarterly Economic Report on Bangladesh.
She said the floods and cyclones caused extensive damages to the agriculture sector by affecting crops, livestock, poultry and aquaculture.
Hua Du said she has been in Bangladesh for about five and half years and is linked with this country since its existence. `But I`ve never seen such a difficult situation that the country has fallen in`, she said.
She said it will be a difficult for government to face the challenge of surging inflation and
food crisis.
‘Really, the country is heading towards difficulties following the floods and the devastating cyclones,’ Hua Du told reporters Monday at the launch of Quarterly Economic Update on Bangladesh.
‘I''m here for about five and a half years and I''m linked to this country since its independence,’ said Du in the bank''s Dhaka office, ‘but I have never sensed such difficulties the country is going to face this
year.’
The quarterly report recast the country''s GDP growth below 6
percent in the current
fiscal year (2007-08), compared to 6.5 percent in the previous fiscal year because of natural calamities and a slowdown in export.
Tackling soaring inflation and the food shortage would make the challenge more difficult for the government, she said.
Replying to a query, she said release of business leaders detained on graft charges would have a positive impact in regaining business confidence.
The Sept 2007 edition of quarterly economic update says the country''s overall economic performance will slow down because of adverse impact of floods and cyclone.
Agriculture sector suffered serious damage due to two consecutive floods and deadly cyclones, it said.
Exports in July-September period of 2007-08 fell by 5.4 percent compared with the same period of the last fiscal year.
The report says pressures on fiscal balance are likely to heighten by a rise in spending for the post-cyclone relief operations, expansion of food-assisted safety nets and imports of food grains and fertiliser.
The report hailed the government''s efforts to boost revenue earnings.
''The revenue collection increased by 21.8 percent in July-October of FY 2007-08 over the corresponding period of the previous fiscal year.''
ADB said rising oil and food grain prices had been threatening the balance of payments outlook. But the workers'' remittances continue to provide a cushion to the balance, it added.
The quarterly report predicted the Bangladesh`s GDP might slightly fall in the current fiscal year compared to the previous year. The 2007-08 fiscal year might experience lower than 6 percent GDP growth because of floods, cyclone and decrease in export, the report said.
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