BB finds macroeconomic outlook impressive

The central bank sees country's macroeconomic outlook for this fiscal year (FY) "impressive" for some major boosters.
Increased domestic demand, prospective food production and a stable political situation helped a great deal in the turnaround, says an account given by the Bangladesh Bank.
 "If this trend continues, 7.0 per cent economic growth and 6.20 per cent inflation seem quite achievable," the BB said in its latest quarterly report.
According to the Bangladesh Bank Quarterly (BBQ) for October-December 2015, the economy has gained such momentum despite a moderate pace of global economic recovery.
 "We expect that the GDP (gross domestic product) will be achievable at 7.0 per cent by the end of this fiscal year if the existing situation continues," a BB senior official told the FE Sunday, explaining the projections.
He also said the BB had estimated the GDP growth based on the available data during the first six months of the ongoing FY (2015-16). "We earlier projected the GDP growth at a range from 6.8 per cent to 6.9 per cent for the FY 16," the central banker said.  
Later, the BB revised its earlier GDP growth projection considering overall economic activities during the July-December period of the FY16.
On the other hand, the country's economic growth is set to break the 'six per cent trap', as a 7.05 per cent growth rate has finally been estimated for this FY, driven by industrial and service sectors, according to the Bangladesh Bureau of Statistics (BBS) data.
The latest BBQ says economic activities which expanded during the second quarter (Q2) of the FY16 have been reflected in various macroeconomic indicators.
A significant growth in agricultural credits (28.40 percent) along with favorable weather conditions helped agricultural production grow in the period under review, it added.
"Although different proxy variables related to service-sector performance like trade financing, bank advances to the transport and communications sector, and cargo handled through Chittagong port showed mixed results in service-sector activities, tourism along with hotel and restaurant businesses remained buoyant during the period due to a stable political situation," the BB noted.
The central bank account of the economic health of the country also mentioned the latest trends in different economic indicators, like credit growth to the private sector, export earnings, import payments, industrial production index and inflation.
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