The World Bank (WB) in a report today upgraded its forecast for the Bangladesh economy, attributing the progress to the supportive fiscal policy, stable political situation and effective development initiatives.
The WB in its Global Economic Prospects, released in Washington, predicted that the GDP growth in 2018 would be 6.7 percent, higher from its earlier forecast of 6.4 percent for 2017.
The WB’s Bangladesh’s growth forecast is the third highest among SAARC countries when the highest prediction was for India (7.3 percent) and the lowest was for the Afghanistan (3.4 percent).
The WB’s conservative prediction, however, is lower than the GDP growth rate that the country already achieved in 2016-17 financial year (FY17).
According to Bangladesh Bureau of Statistics (BBS), the country attained 7.28 percent GDP growth last financial year when government raised the fiscal target to 7.4 percent for the current 2017-18 (FY18).
The report Global Economic Prospects, released Wednesday, depicted a picture of the prospects and challenges of the global economy in 2018.
WB has forecasted global economic growth to edge up to 3.1 percent in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues.
“Growth in advanced economies is expected to moderate slightly to 2.2 percent in 2018, as central banks gradually remove their post-crisis accommodation and the upturn in investment growth stabilizes,” it added.
The international donor agency also said growth in emerging market and developing economies as a whole is projected to strengthen to 4.5 percent in 2018, as activity in commodity exporters continues to recover amid firming prices.
According to the report, Indian economy would grow by 7.3 percent this year when the GDP growth in Afghanistan would be 3.4 percent, Bhutan 6.9 percent, the Maldives 4.9 percent, Nepal 4.5 percent, Pakistan 5.8 percent and Sri Lanka 5 percent.