Bangladesh continues to be among the fastest growing economies in Asia and the Pacific. Bangladesh is expected to grow at eight per cent this year, the highest in Asia. Buoyant exports, robust private consumption, higher remittance, accommodative monetary policy and ongoing reforms to improve the business climate and high infrastructure spending are helping Bangladesh.
Favorable trade prospects are expected to continue. Exports and remittances are likely to be further strengthened. Strong public investment and expedited implementation of large infrastructure projects are also envisaged. Public investment expanded from eight per cent to 8.2 per cent and total investment contributed 2.8 percentage points to growth. But private investment edged up to 23.4 per cent in fiscal 2018-19 from 23.3 per cent a year earlier. Apart from that, private sector credit growth slowed to 11.3 per cent from 16.9 per cent, partly due to a decline in deposit growth. Inflation is expected to edge up to 5.8 per cent from 5.5 per cent on upward adjustments to domestic gas prices, higher price of goods and services due to expansion in value-added tax coverage, and the depreciation of the currency against the dollar.