DHAKA: The United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) has projected 6.8 percent GDP growth for the current financial year 2016-17 (FY17), underpinned by the expected rise in farm income, a rebound workers’ income and multi-year low inflation rates.
“Near-term economic growth is projected to remain high at 6.5-6.8 percent in 2017 and 2018,” ESCAP said this in its flagship report titled “Economic and Social Survey of Asia and the Pacific 2017”, launched today here and elsewhere of the Asia-Pacific region.
UN Resident Coordinator and United Nations Development Programme (UNDP) Resident Representative in Bangladesh Robert D Watkins, UNESCAP Economic Affairs Officer Sudip Ranjan Basu and Director General of Bangladesh Institute of Development Studies (BIDS) Dr Khan Ahmed Sayeed Murshid were present at the ceremony, among others.
Sudip Ranjan Basu delivered a powerpoint presentation by highlighting the key areas of the report especially on Bangladesh issues.
The report said consumer spending is likely to drive the economy and steady growth of Foreign Direct Investment (FDI) and merchandise exports would enable the country to maintain its current account surplus.
Despite the positive outlook, the report noted signs of heightened financial sector risks, such as rising non-performing loans and steep deterioration in returns on equity and assets. “These developments have promoted an increase in regulatory supervision,” it added.
The report also highlighted further strengthening the tax-collection in order to overcome infrastructure and energy shortages aimed at sustaining the economic development.
Despite ongoing efforts to streamline tax administration and encourage compliance, the report observed the tax to-GDP ratio remaining below 10 percent.
“In this regard, recent policies to enhance the investment climate, such as creation of one-stop services, should help to energise the business sector and enhance tax collection,” it added.
Sudip Ranjan Basu underscored the need for giving more attention on social inclusive and environment sustainability to sustain the economic growth.
He also recommended making more prominent fiscal policy in contributing to long-term economic growth, social protection and addressing environment digression.
