GDP growth rate likely to reach targeted 8.20pc in FY20: BB

FE Online Report | Published: October 09, 2019 13:06:30 | Updated: October 19, 2019 11:01:42

The front view of Bangladesh Bank seen in this undated FE photo

Bangladesh Bank is expecting that the growth rate of the country’s Gross Domestic Product (GDP) will achieve 8.20 per cent target in the current fiscal year (FY20).

The Bangladesh Bank Quarterly, released on Wednesday, made the prediction despite mentioning a number of downside risks.

“Looking ahead, economic growth outlook is expected to remain strong at the targeted level (8.2 percent) and inflation remains at below the targeted level (5.5 percent) in FY20,” said the central bank’s report.

The report, however, pointed out that some external and internal factors ‘are the likelihood of downside risk of economic growth prospect’.

The external risk factors include sluggish global growth, disrupting supply chain by the escalating trade war, Brexit-related uncertainty, and rising geopolitical tension.

According to the central bank, domestic risk factors are managing high Non-Performing Loan (NPL) and tight liquidity condition mainly due to slower growth of deposit.

“A coordinated monetary and fiscal policy is required ensuring growth momentum and stable inflation,” it suggested.

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