World Economy

Bangladesh to Maintain Growth Pace

Bangladesh to Maintain Growth Pace Bangladesh to Maintain Growth Pace

With all major economic indicators performing strong in the outgoing year 2016, the economy is showing prospect of maintaining the steady growth pace in 2017, according to Bangladesh Bank.

“All economic indicators including inflation, foreign exchange reserve, exchange rate and credit flow in private sector are broadly in line with the targets for 2016-17 financial year”, said BB economic adviser M. Akhtaruzzaman, bdnews24 reported.

He said all the indicators are showing that the economy would maintain steady growth path in the coming year.

According to the central bank, the point to point inflation was 5.38% in November, which was close to the target of 5.8% for 2016-17 FY17.

The reserve also hit a record of $32 billion in 2016, which was enough for meeting the country’s six months’ import cost.

The local currency was stable against the greenback as the average exchange rate of US dollar was taka 78.83 on December 21, against 78.66 in December 2015.

The private credit growth, a major pulse of economic activities, also grew by 15.34% in the first quarter of FY 17, close to the fiscal target of 16.5%.

“We are very much hopeful to achieve the 16.5% credit growth at the end of the FY17 as the investment is increasing,” the economist said. Akhtaruzzaman, also executive director of BB, said the lending rate is now about 10% which is the lowest in recent times.

Terming 2016 as a stable year for financial sector, BB’s chief spokesperson Subhankar Saha said the inflation rate, record foreign exchange reserves and export earnings were in comfortable position.


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