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DB says Bangladesh economical growth to "moderate" at 6.9 pct in 2017

Xinhua, April 6, 2017 Adjust font size:

The Asian Development Bank (ADB) is forecasting the Bangladesh economy to expand by 6.9 percent, reflecting moderation from last year, on the back of flattening domestic demand and decline in remittance inflows.

It's forecasted that compared with the 7.05 percent gross domestic product (GDP) growth last year, it is lower than the government projection of 7.2 percent this year.

"GDP growth is expected to moderate to 6.9 percent in FY2017 as domestic demand rises more slowly and the slide in workers' remittances deepens," the Manila-based bank said in its Asian Development Outlook Update (ADOU) 2017, which was released here Thursday.

It said slower export growth caused by weaker consumer demand in the euro area and the United Kingdom is expected in part because the currencies of these destination markets have depreciated against the dollar.

"Growth in FY2018 is expected to remain unchanged at 6.9 percent as the broad momentum in the previous year continues."

In contrary to the Bangladeshi government's growth expectation of beyond 7 percent for the current fiscal year 2016-17, the World Bank in a report earlier also predicted that Bangladesh's gross domestic product (GDP) is to grow 6.8 percent in the current 2016-17 fiscal year.

The Washington-based bank said in its flagship report "Global Economic Prospect: Weak Investment in Uncertain Time" released in January said domestic security challenges compounded weak external demand and a mild pickup in private investment, offsetting an uptick in infrastructure spending and increased public sector wages.

Bangladesh's Planning Minister AHM Mustafa Kamal said major economic indicators have so far showed strong and steady economy during this fiscal year compared to that of fiscal year 2015-16 (July 2015-June 2016).

Kamal Sunday said his government is in a position to face all the hurdles in achieving desired growth in three key sectors -- agriculture, service and industry.

The minister had earlier said the country's economy is expected to grow 7.5 percent this 2016-17 financial year (July 2016-June 2017), a tad higher than the previous estimate of 7.2 as the economic fundamentals look strong.

Bangladeshi parliament on June 30 last passed 3.41 trillion taka (42.58 billion U.S. dollars) national budget for 2016-17 fiscal year, targeting an economic growth of 7.2 percent. Endit