2016-17 fiscal

WB projects 6.8pc GDP growth for Bangladesh

16 Apr 2017, 23:17

Online Desk

Dhaka: The World Bank has projected that Bangladesh will have a 6.8 percent growth of Gross Domestic Product (GDP) in the current 2016-17 fiscal.

"Growth will be sustained at 6.8 percent in 2017FY, compared with the officially reported 7.1 percent in 2016FY and with a decelerating inflation rate and a budget deficit that has narrowed," said the latest WB report released on Sunday.

According to its 'Globalisation Backlash' report, the country's GDP growth may decline to 6.4 percent in the 2017-18 fiscal and 6.7 percent in the 2018-19 fiscal.

The global lender said the Bangladesh economy has weathered global uncertainties well, aided by strengthening investment and a recovery of exports.

It said infrastructure gaps and inadequate energy supply, combined with the high cost of doing business, remain the main obstacles to the realization of Bangladesh's growth potential.

The World Bank, however, said industrial production reached a record-high recently and growth remains strong in Bangladesh.

About the South Asian economic growth, the new report said possible protectionism in advanced economies should not deter export-oriented growth in South Asia, a region that could even benefit from the backlash against globalization.

The report also confirmed that South Asia remains the fastest-growing region in the world, gradually widening its lead relative to East Asia. Regional GDP growth is expected to rise from 6.7 percent in 2016 to 6.8 percent in 2017, and 7.1 percent in 2018.

The just released edition of the twice-a-year South Asia Economic Focus explores whether South Asian countries should worry about mounting protectionist pressures.

"To make the most of this export opportunity, countries in the region should continue to focus on policies that promote economic growth," said World Bank South Asia Region Chief Economist Martin Rama.

Among other South Asian countries, the growth will be sustained at the highest 7.2 percent in India in 2017 fiscal year, while 6 percent in Nepal, 5.2 percent in Pakistan.

Besides, there will be 6.8 percent growth in Bhutan in the 2017 calendar year, while 4.7 percent in Sri Lanka, 4.5 percent in Maldives and 2.4 percent in Afghanistan.