Dhaka, Bangladesh (BBN)-The Bangladesh government has set 7.2 per cent gross domestic product (GDP) growth target for fiscal 2016-17.
Finance Minister AMA Muhith revealed the target while placing BDT 3.40 trillion national budget for 2016-17 fiscal year in the Bangladesh National Parliament in Dhaka Thursday afternoon.
The 7.2 percent target of economic growth in the next financial year (FY) 2016-17 is only a 0.2 per centage points lower than that in the 7.0 per cent target in the last FY16.
According to Bangladesh government’s statistical body BBS statistics, in the outgoing FY16, Bangladesh’s economy for the first time has crossed the 6.0 per cent trajectory as it has recently estimated to grow at 7.05 per cent rate against the 7.0 per cent target.
The finance minister said that in recent months, a number of private sector investment indicators have posted positive changes.
“I expect this trend to continue in the next fiscal year underpinned by our ongoing efforts in infrastructure development,” he expressed his optimism.
In the case of public investment, both the size of ADP and its implementation rate will be stepped up, he said.
He also expected that 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 minister added.
Moreover, there will be an upswing in foreign remittance inflows on account of recent increase in overseas employment.
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, he said.
“Taking all these into consideration, we have set GDP target at 7.2 per cent for the next fiscal year,” Muhith said.
In the last few years, Bangladesh has failed to cross the 6.0 percent economic growth line.
International lending agencies the World Bank, Asian Development Bank, International Monetary Fund, local think tanks –the Center for Policy Dialogue, and the Policy Research Institute — were criticising the government for failing to exceed 6.0 per cent growth trap for its poor policy and financial measures.