ESCAP projects 6.8 per cent growth for Bangladesh

United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has projected that Bangladesh would achieve 6.8 per cent GDP growth in the current fiscal year of 2016-17 against the government's target of 7.2 per cent, reports UNB.
The ESCAP also forecast that the country's GDP growth will decline further at 6.5 per cent in 2017-18 fiscal year due to some risks which would come mostly from global policy uncertainty and lower remittance caused by weak economic activity in the host countries, particularly those in the Middle East.
The ESCAP made the projection at its annual flagship report titled 'Economic and Social Survey of Asia and the Pacific 2017' launched here on Monday, seven days after the report was launched in Bangkok on May 1.
ESCAP economist Sudip Ranjan Basu presented the report at a function in the city's IDB Bhaban, while UN Resident Coordinator in Bangladesh Robert D. Watkins and Director General of Bangladesh Institute of Development Studies (BIDS) Dr Khan Ahmed Sayeed Murshid spoke on the occasion.
According to the report, consumer spending is likely to drive the economy, underpinned by the expected rise in farm income, a rebound in workers' remittances and multi-year low inflation rates.
Steady growth of FDI and merchandise exports would enable the country to maintain its current account surplus.
Despite the positive outlook, there are signs of heightened financial sector risks such as rising non-performing loans and steep deterioration in returns on equity and assets, the report said.
To sustain medium-term economic development, tax collection needs to be further strengthened in order to overcome infrastructure and energy shortage, it said.
Despite ongoing efforts to streamline tax administration and encourage compliance, the tax-to-GDP ratio remains below 10 per cent. The recent policies to enhance the investment climate, such as creation of one-stop services, should help to energize the business sector and enhance further tax collection.
Mentioning that Bangladesh economy has enjoyed an annual growth rate of at least 6 per cent since 2011, the report said the economic growth of Bangladesh reached a decade-high of 7.1 per cent in 2015-16 fiscal.
The net exports of goods and services drove the overall economic expansion as a result of steady export growth, mainly of readymade garments, and much larger decline in import bills due to low oil prices in the international market.

ESCAP projects 6.8 per cent growth for Bangladesh

United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has projected that Bangladesh would achieve 6.8 per cent GDP growth in the current fiscal year of 2016-17 against the governments target of 7.2 per cent, reports UNB. The ESCAP also forecast that the countrys GDP growth will decline further at 6.5 per cent in 2017-18 fiscal year due to some risks which would come mostly from global policy uncertainty and lower remittance caused by weak economic activity in the host countries, particularly those in the Middle East. The ESCAP made the projection at its annual flagship report titled Economic and Social Survey of Asia and the Pacific 2017 launched here on Monday, seven days after the report was launched in Bangkok on May 1. ESCAP economist Sudip Ranjan Basu presented the report at a function in the citys IDB Bhaban, while UN Resident Coordinator in Bangladesh Robert D. Watkins and Director General of Bangladesh Institute of Development Studies (BIDS) Dr Khan Ahmed Sayeed Murshid spoke on the occasion. According to the report, consumer spending is likely to drive the economy, underpinned by the expected rise in farm income, a rebound in workers remittances and multi-year low inflation rates. Steady growth of FDI and merchandise exports would enable the country to maintain its current account surplus. Despite the positive outlook, there are signs of heightened financial sector risks such as rising non-performing loans and steep deterioration in returns on equity and assets, the report said. To sustain medium-term economic development, tax collection needs to be further strengthened in order to overcome infrastructure and energy shortage, it said. Despite ongoing efforts to streamline tax administration and encourage compliance, the tax-to-GDP ratio remains below 10 per cent. The recent policies to enhance the investment climate, such as creation of one-stop services, should help to energize the business sector and enhance further tax collection. Mentioning that Bangladesh economy has enjoyed an annual growth rate of at least 6 per cent since 2011, the report said the economic growth of Bangladesh reached a decade-high of 7.1 per cent in 2015-16 fiscal. The net exports of goods and services drove the overall economic expansion as a result of steady export growth, mainly of readymade garments, and much larger decline in import bills due to low oil prices in the international market.