Bangladesh's economy to grow slightly faster by 6.5% in FY24: ADB

[Black_cats]

Bangladesh's economy to grow slightly faster by 6.5% in FY24: ADB

ECONOMY​

TBS Report
20 September, 2023, 11:05 am
Last modified: 20 September, 2023, 11:30 am

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023​

Representational Image

Representational Image

Bangladesh's gross domestic product (GDP) is expected to grow by 6.5% in FY2024, compared to the 6.0% growth in the previous fiscal year, according to the latest Asian Development Bank (ADB) report released today.

The report "Asian Development Outlook (ADO) September 2023" states that the slightly faster growth forecast reflects an improvement in domestic demand and better export growth due to economic recovery in the euro area.

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023. The current account deficit is expected to slightly narrow, from 0.7% of GDP in the previous fiscal to 0.5% in FY2024, as remittance growth improves.

The main risk to this growth projection is a further deterioration in export growth if global demand is weaker than expected, reads the report.

"The government is managing relatively well against the external economic uncertainties, while advancing infrastructure development and critical reforms to improve the investment climate," said ADB Country Director Edimon Ginting.

These key structural reforms include strengthening public financial management, enhancing domestic resource mobilisation, improving logistics, and deepening the financial sector, which are critical for private sector development, export diversification and productive job creation in the medium term, said Ginting.

"Continued high oil prices also provides a good incentive to accelerate reforms to expand domestic renewable energy supply and achieve the country's climate change goals."

The report states that moderate inflation and an increase in remittances will contribute to reviving private consumption, while the completion of a number of major government infrastructure projects will increase investment. Private investment, however, may be dampened by the initial higher interest rates following the enhancement in the country's monetary policy framework.

Inflation is expected to ease with some fall in global non-fuel commodity prices, higher agricultural production, and the initial tightening of monetary policy under the new framework.

Bangladesh's economy to grow slightly faster by 6.5% in FY24: ADB

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023

www.tbsnews.net

 

[IndianLite]

Bangladesh's economy to grow slightly faster by 6.5% in FY24: ADB

ECONOMY​

TBS Report
20 September, 2023, 11:05 am
Last modified: 20 September, 2023, 11:30 am

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023​

Representational Image

Representational Image

Bangladesh's gross domestic product (GDP) is expected to grow by 6.5% in FY2024, compared to the 6.0% growth in the previous fiscal year, according to the latest Asian Development Bank (ADB) report released today.

The report "Asian Development Outlook (ADO) September 2023" states that the slightly faster growth forecast reflects an improvement in domestic demand and better export growth due to economic recovery in the euro area.

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023. The current account deficit is expected to slightly narrow, from 0.7% of GDP in the previous fiscal to 0.5% in FY2024, as remittance growth improves.

The main risk to this growth projection is a further deterioration in export growth if global demand is weaker than expected, reads the report.

"The government is managing relatively well against the external economic uncertainties, while advancing infrastructure development and critical reforms to improve the investment climate," said ADB Country Director Edimon Ginting.

These key structural reforms include strengthening public financial management, enhancing domestic resource mobilisation, improving logistics, and deepening the financial sector, which are critical for private sector development, export diversification and productive job creation in the medium term, said Ginting.

"Continued high oil prices also provides a good incentive to accelerate reforms to expand domestic renewable energy supply and achieve the country's climate change goals."

The report states that moderate inflation and an increase in remittances will contribute to reviving private consumption, while the completion of a number of major government infrastructure projects will increase investment. Private investment, however, may be dampened by the initial higher interest rates following the enhancement in the country's monetary policy framework.

Inflation is expected to ease with some fall in global non-fuel commodity prices, higher agricultural production, and the initial tightening of monetary policy under the new framework.

Bangladesh's economy to grow slightly faster by 6.5% in FY24: ADB

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023

www.tbsnews.net

What happened to the impending meltdown and dollar crunch?

Oil price is falling fast.

Expect dollar reserve to stabilise at around 25 billion.

 

[mb444]

Bangladesh's economy to grow slightly faster by 6.5% in FY24: ADB

ECONOMY​

TBS Report
20 September, 2023, 11:05 am
Last modified: 20 September, 2023, 11:30 am

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023​

Representational Image

Representational Image

Bangladesh's gross domestic product (GDP) is expected to grow by 6.5% in FY2024, compared to the 6.0% growth in the previous fiscal year, according to the latest Asian Development Bank (ADB) report released today.

The report "Asian Development Outlook (ADO) September 2023" states that the slightly faster growth forecast reflects an improvement in domestic demand and better export growth due to economic recovery in the euro area.

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023. The current account deficit is expected to slightly narrow, from 0.7% of GDP in the previous fiscal to 0.5% in FY2024, as remittance growth improves.

The main risk to this growth projection is a further deterioration in export growth if global demand is weaker than expected, reads the report.

"The government is managing relatively well against the external economic uncertainties, while advancing infrastructure development and critical reforms to improve the investment climate," said ADB Country Director Edimon Ginting.

These key structural reforms include strengthening public financial management, enhancing domestic resource mobilisation, improving logistics, and deepening the financial sector, which are critical for private sector development, export diversification and productive job creation in the medium term, said Ginting.

"Continued high oil prices also provides a good incentive to accelerate reforms to expand domestic renewable energy supply and achieve the country's climate change goals."

The report states that moderate inflation and an increase in remittances will contribute to reviving private consumption, while the completion of a number of major government infrastructure projects will increase investment. Private investment, however, may be dampened by the initial higher interest rates following the enhancement in the country's monetary policy framework.

Inflation is expected to ease with some fall in global non-fuel commodity prices, higher agricultural production, and the initial tightening of monetary policy under the new framework.

Bangladesh's economy to grow slightly faster by 6.5% in FY24: ADB

Inflation is projected to ease to 6.6% in the current fiscal from 9.0% in FY2023

www.tbsnews.net

Economic growth of BD has many components.

Dollar crunch mainly impacts the RMG export sector but has minimal impact on agriculture although for the latter things such as fertiliser/transport cost would have increased.

BD economy continues to grow because our economic engine is dependent on internal demand of 170m consumers primarily utilising internally sourced resources.

 

[Skull and Bones]

Its a decent rate of growth.

 

[IndianLite]

Its a decent rate of growth.

Most importantly it’s relentless and consistent.

And much more evenly spread out given the growth engine is extremely labour intensive.

I would be worried if the growth was led by the few million people in the service sector.

 

[Skull and Bones]

Most importantly it’s relentless and consistent.

And much more evenly spread out given the growth engine is extremely labour intensive.

I would be worried if the growth was led by the few million people in the service sector.

BD did well in employment front.

 

[saif]

BD did well in employment front.

Mostly garments.

 

[Skull and Bones]

Mostly garments.

Yes, we all know that, Captain Obvious.

 

[IndianLite]

Yes, we all know that, Captain Obvious.

He has a habit of walking into doors.