World Bank forecasts 6.8pc growth for 2016

Bangladesh economy would grow at the rate of 6.8 percent in 2016, supported by eased political tension and rebounded export earnings, according the latest report of the World Bank (WB).

The report Global Economic Prospects, released Wednesday in Washington, gave a picture of the prospects and challenges of the global economy in 2016.

It said that the weak growth among major emerging markets would weigh on global growth this year, but the growth in South Asia region would rise to 7.3 percent this year from 7.0 percent of 2015.

For Bangladesh, the outlook was stable as the report predicted constant 6.8 percent GDP (gross domestic product) growth for the next three years till 2018.

With this latest forecast, the multi-donor agency raised its economic outlook for Bangladesh again as it earlier said the GDP would grow by 6.5 percent at the end of the current 2015-16 financial year.

According to the report, Indian economy would grow by 7.7 percent this year when the GDP growth in Afghanistan would be 3.1 percent, Bhutan 7.2 percent, the Maldives 3.1 percent, Nepal 3.7 percent, Pakistan 5.5 percent and Sri Lanka 5.6 percent.

Bangladesh`s growth forecast is the third highest among SAARC countries when the highest prediction was for India (7.7 percent) and the lowest was for the Maldives (3.1 percent) and Afghanistan (3.1 percent).

The International Monetary Fund (IMF) already lifted the economic outlook for Bangladesh to 6.8 percent, close to the fiscal target of 7.0 percent. The ADB also raised the GDP to growth prediction to 6.7 percent.

The WB report, however, cautioned that `a resumption of political tensions` would hinder the steady economy growth.