National

BB forecasts steady GDP growth for 2016

Bangladesh Bank (BB) projected steady GDP (Gross Domestic Product) growth for 2016, driven mainly by substantial rise in export earnings, vibrant domestic demands, enhanced digital technology and strong foreign exchange reserves supported by steady inflow of remittance.Like the previous year, the central bank on Tuesday released a review on its major activities in 2015, putting high hopes that the country`s economy would improve further next year as the macroeconomic indicators are showing a positive trend."The GDP growth is likely to cross 6.51 percent this fiscal as all major economic indicators are moving forward while many countries like China`s economic growth is in backward," BB chief economist Biru Paksha Paul said.The per capita income also increased to $1314 in 2014-15 financial year while it was $1044 in 2013-14 financial.In the review, the central bank showed that the country passed a very stable year for financial sector, with a low level of inflation, record foreign exchange reserves, steady rise in remittance inflow and export earnings and low import.The exchange rate also remained stable in the outgoing year when lending rate of banks and outstanding banks` loan came down to a comfortable label compared to previous years.The BB chief economist said the inflation, which was 6.20 percent in November, would ease further next year as the oil price in international market is declining day by day.According to the review, the foreign currency reserves reached a new high of $27.3 billion on December 20, which was $22.3 billion in the end of December 2014.The remittance earning was $15.3 billion in 2014-15 fiscal while the country received $6.2 billion in the last five months of the current 2015-16 fiscal year.The inflow of remittance would cross $16 billion mark in the end of this fiscal year as modernisation and digitisation of the banking sector have brought about a radical change to remittance sending and delivery system, Paul said.The review showed that the country earned $12.9 billion in the past five months of the current fiscal year, which was higher by 6.7 percent over the previous fiscal`s income for the same period.The import cost during the period was $40.7 billion while the import of capital equipment and industrial raw materials showed a positive trend.The central bank review said that it continued ethical pressure on the banks, with bringing down the spread (difference between deposit and lending rate), which was 4.77 percent in October.