Developing Asia's 2017 growth seen as weakest in 16 years - ADB
Apr 10, 2017, 01:56
On a brighter note, South Asia will remain the fastest-growing subregion, with GDP growth rising from 7 percent this year to 7.2 percent in 2018, led by its largest economy, India.
In 2016 Azerbaijan's GDP declined 3.8%, inflation stood at 12.4%. "Stronger consumption and fiscal reforms are also expected to improve business confidence and investment prospects in the country".
Varma, however, described the outlook as a very positive for Bangladesh.
It also expects inflation to rise this fiscal from 4.7 per cent in 2016. That would be the region's weakest expansion since it grew 5.0 percent in 2001.
The administration plans to increase spending on infrastructure to an equivalent of 7.1% of GDP by 2022 from a programmed 4.3% of GDP in 2015 and from 1.8% in 2010, according to the December issue of EconomyPH of the government's Investor Relations Office.
Emphasising that continued economic reform is essential to reach a high growth trajectory, the Asian Development Bank (ADB) has asked Pakistan to address key constraints on growth since regulation remains burdensome, requiring more reforms to provide an enabling environment that promotes business and encourages investment.
Remittance inflows dipped by 17.6% to US$6.2 billion in the first half of FY2017 as economic tightening continued in Gulf Cooperation Council economies and newly constrained inflows from the USA and the United Kingdom appeared to reflect political uncertainties there. Exports are forecast to grow by 6 per cent the coming year.
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Public spending also rose 8.3 percent with increased expenditure on social programs including the conditional cash transfers.
Growth in South Asia is expected to hit seven percent this year and 7.2 per cent next year, with India rebounding from demonetisation that temporarily hit the economy. -China trade war apparently subsiding, and worries over the U.S. Fed's interest rate hikes easing, Asia's outlook in 2017 may be far better than many feared at the start of the Year of the Rooster.
On the ambitious revenue target for the current fiscal year, the ADO said the budget assumes 36.8 percent growth in revenue, attained by raising the ratio of revenue to GDP to 12.4 percent from 9.9 percent in the previous year.
It said creating productive jobs in manufacturing and modern services is a major policy changes for Bangladesh economy.
Remittance inflows are in declining trend this year as economic tightening continued in the Gulf Cooperation Council economies and newly constrained inflows from the USA and the United Kingdom appeared to reflect political uncertainties there, according to ADB.
Replying to a question, ADB Staff Consultant Mohammad Zahid Hossain said it is charisma of Bangladesh economy that it continues to register a high growth rate despite the slow rise in export and remittance.
Replying to a question, ADB Staff Consultant Mohammad Zahid Hossain said, "Bangladesh economy attains its internal capacity".
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