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DHAKA, Jan. 11 (Xinhua) -- The World Bank has predicted that Bangladesh's gross domestic product (GDP) is to grow 6.8 percent in the current 2016-17 fiscal year (July 2016-June 2017).
"Bangladesh's growth is expected to ease to a still solid 6.8 percent in FY2017 (ending on 30 June 2017), from the official estimate of 7.1 percent in the previous fiscal year," the Washington-based bank said in its flagship report Global Economic Prospect: Weak Investment in Uncertain Time, which was also released here Wednesday.
It 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.
A slowdown in oil-rich Gulf Cooperation Council (GCC) economies has led to receding remittances inflows to both Bangladesh and Sri Lanka, dampening private consumption and investment, it added.
According to the report, South Asia's growth remained steady at an estimated 6.8 percent in 2016, the same pace as in 2015, buoyed by robust domestic demand. South Asia is the fastest-growing emerging market and developing economy (EMDE) region, it said.
Excluding India, the region grew 5.3 percent, with wide variations among countries. Regional growth is slightly below June projections, mainly reflecting a modest downgrade to India's brisk expansion, the latest World Bank report revealed.
