Bangladesh is second in South Asia, just behind Sri Lanka which tops the region in economic growth during 2012, an UN report says.
The report “World Economic Situation and Prospects 2013” says that growth in South Asia in 2012 was the slowest in the region in the last ten years – due to inflation, political uncertainity, energy crisis and weakening investor confidence.
Growth in South Asia – placed at 4.4 percent in 2012 — was the lowest in the region during the last ten years – all because of inflation, political uncertainty, fuel and investment crisis, says a United Nations report putting expectations at it to speed up in 2013.
The report said that exports from South Asia slackened due to recession in developed and other developing countries.
It forecast a 6.3 percent growth for Bangladesh in 2013 and 5.7 percent in 2014.
The report said Bangladesh has had strong growth in private investment and consumption backed by steady rise in remittance inflow that boosted growth.
The growth of India, the biggest economy of South Asia, fell from 9 percent in 2010 to 5.5 percent in 2012 – the lowest in 10 years. As India contributes to three-fourth of the regional GDP, this adversely affected growth across South Asia.
The report mentioned fall in total investment in Pakistan for four consecutive years.
It said although Bangladesh and other countries had netted higher remittance inflow, South Asia is struggling with ‘deep-rooted’ structural challenges in labour markets caused by low-productivity jobs, low female participation, unemployment and large number of working poor.
The report concluded that global and regional economic weakness will continue to challenge South Asia’s economy.
It says that a crash of America or China’s economy will adversely affect exports from South Asia and also hinder remittance inflow.bdnews24.com
