Bangladesh economy is in that critical phase where it requires a ‘push’ to break out of the 6% trap. In the absence of any major political setback, GDP growth is expected to pick up from 6.5% in FY15. We might need to wait a bit longer than usual to see the desired reflection of falling lending rate on credit growth and Investments. Problem-ridden financial sector, abundance of foreign loans for quality borrowers and an overall subdued investment sentiment due to infrastructural deficiency will mute the effect of low interest rate on credit growth and investments.

Read the full report here.

Categories: Economy

Related Posts

Economy

Budget Insights 2016-17

The national budget for FY17 has been proposed in a stable macroeconomic context. While GDP growth and inflation figures in last fiscal year were within Government’s target, budgeted expenditure and revenue were largely off-target as Read more…

Economy

Bangladesh Economy 2017

The economy, riding on the key economic drivers, emerged from its two-year long hibernation. Furthermore, waves of new investment commitments by the Government and foreign partners revived investors’ confidence, generating optimism to a whole new Read more…

Economy

Budget Insights 2015-16

The forthcoming fiscal 2015-16 marks the beginning of the terminal phase of ‘Vision 2021’. The proposed budget for FY 2015-16, therefore, aims high to break free of the 6% growth trap and achieve a ‘modest’ Read more…