BD economy to grow 7.0pc in FY18: ADB

Bangladesh economy is likely to grow by 7.0 per cent in the current fiscal year, according to the latest projection of the Asian Development Bank (ADB).

The Manila-based international lender organisation also projected that annual inflation rate may reach at 6.10 per cent in FY18.

The Asian Development Outlook (ADO-2018), released today across the region, unveiled the latest projection.

“GDP growth is expected to moderate to 7.0% in FY2018 as consumption demand slackens despite a rebound in worker remittances,” said the ADO.

“Remittance beneficiaries are likely to adopt a cautious approach to spending, repaying debt incurred in recent years of remittance declines,” it added.

The projection comes within two weeks of Bangladesh Bureau of Statistics (BBS) revealing its preliminary estimation that the country’s GDP would grow by 7.65 per cent in the current fiscal year.

The World Bank, however, strongly differed with the BBS estimation and mentioned that the growth may stand at 6.50 per cent.

Analysing the current trend of Bangladesh economy, the ADB pointed out that private investment would edge up with support from an accommodative credit policy, and public investment would expand as the ‘authorities seek to speed the implementation of infrastructure projects’.

The ADB also forecast the GDP growth for Bangladesh at 7.2 per cent in the next fiscal year (FY19).