DHAKA, Sept. 26 (Xinhua) -- The Asian Development Bank (ADB) has predicted that Bangladesh's gross domestic product (GDP) is to grow 6.9 percent in the current 2017-18 fiscal year (July 2017 - June 2018).
"GDP is expected to grow by 6.9 percent in FY2018 (July 2017-June 2018), unchanged from Asian (Development Outlook) ADO 2017 but, because of weak domestic demand, slightly below the preliminary official estimate for FY2017," the Manila-based bank said in its Asian Development Outlook Update (ADOU) 2017, which was released here Tuesday.
Forecasts assume that domestic revenues rise in line with budget targets, which must be met to implement the public investment program, and that absorptive capacity improves toward effectively spending a large increase in external financing.
They further assume the implementation of policy reform and the completion of ongoing power and transport projects vital to reviving private investment, as well as the maintenance of political stability as national elections approach in 2018.
According to ADOU, Bangladesh's growth in the last 2016-17 fiscal year (July 2016-June 2017) was higher than expected as consumption picked up in response to rising income, and as public investment strengthened.
Inflation was lower than projected, and the current account moved into deficit, as expected, with a wider trade deficit and lower remittances, it said.
