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Thursday, June 9, 2016, Jaistha 26, 1423 BS, Ramadan 3, 1437 Hijri

Bangladesh economy resilient despite lower global forecast
Business Correspondent
Published :Thursday, 9 June, 2016,  Time : 12:00 AM  View Count : 39
Bangladesh economy would continue to show strength despite lower forecast for most of the developed countries, according to the latest economic update of the World Bank (WB).
The Global Economic Prospects report of the WB, released on Tuesday, downgraded the global economic growth forecast to 2.4 per cent from earlier 2.9 percent.
The Bank attributed the growth cut to the sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows.
It, however, said the South Asian economy including Bangladesh would perform better, thanks to the falling oil price, low inflation and steady remittance.
"India, the region's largest economy, showed strengthening activity, as did Pakistan, Bangladesh and Bhutan", the report said. "Activity has remained resilient as domestic demand, the main driver of growth, remained robust," the WB added.
It forecast 7.1 per cent growth for South Asia in 2016, despite weaker-than-expected growth in advanced economies, which has dampened export growth in the region.
Among major emerging market economies, China is forecast to grow at 6.7 per cent in 2016 after 6.9 per cent last year. India's robust economic expansion is expected to hold steady at 7.6 per cent, while Brazil and Russia are projected to remain in deeper recessions than forecast in January.
According to the report, a significant increase in private sector credit - fuelled by an era of low interest rates and, more recently, rising financing needs - raise potential risks for several emerging market and developing economies, the report finds.

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