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Bangladesh to achieve 6.9pc GDP growth in FY17: IMF

DHAKA, April 19, 2017 (BSS) - Bangladesh is likely to achieve 6.9 percent GDP growth in 2016-17 financial year (FY17), according to the International Monetary Fund (IMF).

IMF forecast the GDP growth in a report of the World Economic Outlook (WEO) released on Tuesday ahead of the IMF and the World Bank annual Spring Meeting to be held from April 20 in Washington DC.

According to the WEO, the global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade.

"World growth is expected to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and 3.6 percent in 2018. Stronger activity, expectations of more robust global demand, reduced deflationary pressures, and optimistic financial markets are all upside developments," the report said.

But structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside, especially over the medium term, remain as important challenges.

The report stressed the need for credible strategies in advanced economies and emerging market and developing ones to tackle a number of common challenges in an integrated global economy.

The WEO said emerging market and developing economies have become increasingly important in the global economy in recent years.

"They now account for more than 75 percent of global growth in output and consumption, almost double the share of just two decades ago," it added.

According to the report, the external environment has been important for this transformation and terms of trade, external demand, and, in particular, external financial conditions are increasingly influential determinants of medium-term growth in these economies as they become more integrated into the global economy.

The still-considerable income gaps in these economies vis-...-vis those in advanced economies suggest further room for catch-up, favoring their prospects of maintaining relatively strong potential growth over the medium term.

Yet, the findings show that steady, sustained catch-up growth is not automatic and exhibits episodes of accelerations and reversals over time, the report said.