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IMF predicts 7.0pc growth for BD

October 12, 2017 00:00:00

FE Report

The International Monetary Fund (IMF) projects that Bangladesh's economy would grow by 7.0 per cent in the current fiscal year (FY18)-yet a bit below the government-set rate.

The Fund unveiled the projection in its latest World Economic Outlook, released in Washington Tuesday on the eve of Bank-Fund Annual Meetings.

It also predicted that annual inflation rate would reach 5.8 per cent at the end of the year.

The IMF made the projections on calendar-year basis which showed that Bangladesh growth rate would be 7.1 per cent in 2017 and 7.0 per cent in 2018.

For Bangladesh as well as other countries having July-June period as fiscal year, the calendar year is considered terminal year of the respective fiscal year. By this count, 2018 indicates 2017-18.

Last month, the World Bank and the Asian Development Bank (ADB) projected that Bangladesh would grow by 6.4 per cent and 6.9 per cent respectively in the current fiscal year.

The IMF projection goes closer to government's target of scoring 7.4 per cent growth.

The IMF also projected that current-account deficit would be as high as 1.3 per cent of GDP in the current fiscal year.

In its medium-term projection, the international financial institution mentioned that the growth rate of Bangladesh would remain 7.0 per cent in 2022.

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