Bangladesh - GDP forecast to grow at average 6.7% a year in next 2 years
Source: Asia Insurance Review | Feb 2018
The World Bank has painted a brighter picture for Bangladesh’s economy for the next two fiscal years, on the back of strong domestic demand, exports, investments and remittances.
The “Global Economic Prospects”, a flagship report of the World Bank Group, said activity in Bangladesh would grow at an average of 6.7% a year over the two years to September 2020, benefiting from strong domestic demand and strengthening exports.
“Low interest rates and improved infrastructure are expected to lift investment,” said the report. Remittances will also rise, as Bangladeshis in the Middle East benefit from a firmer GCC economy.
The Bangladeshi government itself has set a target of 7.4% for GDP growth for the current fiscal year ending 30 September, though the economy is projected to grow by 6.4% for the year.
Challenges to efforts to reach the targeted growth rate include banking sector vulnerabilities, infrastructure deficiencies, uncertainties in the run-up to elections, and the slow pace of structural reforms. A