WB forecasts 6.7pc GDP growth for FY16
BSS
Bangladesh economy would grow by 6.7 per cent in 2015-16 financial year (FY16), according to a new report of the World Bank (WB), reports BSS.
The forecast is close to the GDP (gross domestic product) growth target, set in the national budget for FY16. Finance Minister Abul Maal Abdul Muhith has set 7 per cent GDP growth for the current fiscal year. The economy grew by 6.51 per cent in the immediate past 2014-15 fiscal year (FY15).
The World Bank earlier revised down the growth forecast at 5.6 per cent for FY15, but the country dispelled the prediction, with attaining higher growth.
The new report of Bank, however, saw higher growth prospect in the coming days against the backdrop of improved political and microeconomic situation.
As (political) tensions settle, growth should pick up in line with a recovery in exports and investment, said the new report titled Global Economic Prospects, released in June.
Consumption should also remain supported by resilient remittance inflows, particularly following the resumption of migration of Bangladeshi workers to Saudi Arabia, the report said as the countrys remittance inflow already crossed the $15 billion mark for the first time.
While observing that the global economy is in transition, the report was upbeat about the Bangladesh economic prospect: With the economy running at capacity, growth is expected to remain at close to potential over the forecast period.
About the global economy, the report said the world economy is expected to grow 2.8 per cent in 2015, slightly less than the forecast in January, before strengthening moderately to 3.2 per cent in 2016-17.
