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Budget estimates GDP growth to be 7.2% in FY16-17

WT24 Desk

The government today set the target of GDP growth rate to be 7.2 percent as Finance Minister AMA Muhith placed the proposed budget for the 2016-2017 fiscal, BSS reports.

“Taking all (indicators) into consideration, we have set GDP target at 7.2 percent for the next fiscal year,” he said as he placed the proposed budget for 2016-2017 in Jatiya Sangsad.

Muhith said a number of private sector investment indicators posted positive changes in recent months and “I expect this trend to continue in the next fiscal year underpinned by our ongoing efforts in infrastructure development”.

In the case of public investment, he said, both the size of ADP and its implementation rate would be stepped up and added “consumption spending will also rise as public sector employees will draw their salaries including allowances as per the new pay scale”.

“Given the positive economic prospects in export destinations, particularly in the USA and Europe, our export income will increase,” the finance minister said.

Muhith expected an upswing in foreign remittance inflows on account of recent increase in overseas employment and said “gradual fall in inflation coupled with increase in real wages and foreign remittances will boost individual consumption spending”.

“Over and above, political stability is expected to continue,” hoped the minister.  Highlighting the domestic economic scenario, he said, according to the final estimation of Bangladesh Bureau of Statistics (BBS), 6.55 percent growth has been achieved in FY 2014-15, which is higher than that of comparator countries.

He said they targeted 7.0 percent GDP growth for the current fiscal year, meanwhile, provisional estimate released by BBS for current fiscal year reflected a growth of slightly more than 7.0 percent with industry sector particularly posting a growth of 10.1 percent.

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