International Monetary Fund has maintained its previous projection (7 per cent) for Bangladesh’s economic growth, much lower than the government’s target but higher than the forecasts made by other international lending agencies, for the current fiscal year 2017-2018.
The global lending agency made the projection in its latest World Economic Outlook-October 2017 released in Washington of the USA on Wednesday.
The government has set the gross domestic product growth target at 7.4 per cent for FY18.
The IMF projection is, however, higher than that of the Asian Development Bank and the World Bank.
The ADB and the WB in September projected that Bangladesh’s economy would grow by 6.9 per cent and 6.4 per cent respectively.
Earlier in April, the IMF also estimated 7 per cent economic growth in the current fiscal year for the country.
The multilateral lender also said that the country’s economic growth in medium-term would remain at 7 per cent in the FY 2021-2022.
It also estimated that Bangladesh’s economic growth would be 7.1 per cent in last fiscal year (FY17). Bangladesh’s GDP growth was 7.2 per cent in FY16 and 6.8 per cent in FY15.
It also projected that annual inflation rate would reach 5.8 per cent at the end of the year.
Though the factors behind the IMF’s GDP projection for Bangladesh could not be known as it yet to make the full report available online, the ADB in September attributed the slower income growth in agriculture, wage employment and remittance inflows as well as weak domestic demand to the lower GDP growth.
The WB, however, identified the slowdown in job creation, flat export, slowdown in remittance growth and the damages caused by flood to agricultural output and infrastructure as the major reasons for the lower projection.
In its report, the IMF projected that the current account deficit would be 1.3 per cent of GDP in FY18, much higher than the projected 0.7 per cent in FY17.
In medium-term, the deficit would reach 2.4 per cent of GDP, it projected.
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