Bangladesh to be among fastest growing LDCs in 2018: UN



According to a new United Nations report, Bangladesh is expected to be among the least developed countries that will experience the fastest growth in 2018, with expected GDP growth of 7.1%, supported by strong domestic demand.
The UN report on the situation and the global economic outlook 2018 said yesterday: "The Bangladeshi economy is expected to continue to expand rapidly, supported by strong domestic demand, including major construction projects. infrastructure and new initiatives in the energy sector. "

In Bangladesh, gross domestic product growth is expected to remain above 7.1 percent in 2018 and 7.2 percent in 2019, according to the UN's flagship publication on expected trends in the economy. Mondial economy.

Bhutan, one of the four South Asian LDCs, is also expected to grow by 7.1% in 2018 by taking advantage of infrastructure investments.

According to the UN report, growth in the LDCs is expected to increase slightly from 4.8 percent in 2017 to 5.4 percent in 2018 and 5.5 percent next year.

The acceleration is mainly due to more favorable external economic conditions and, in particular, rising commodity prices, which support trade, financial flows and investments in natural resource projects and infrastructure.

Despite better prospects, the LDCs will not be able to meet the target of the Sustainable Development Goals by 8.1 percent this year, which calls for "GDP growth of at least 7% per year ".

Nevertheless, some of the group 's countries will reach average growth of above or close to 7% in 2018-2019 and the majority will grow by 5% or more by the end of 2019, according to the report.

In 2017, inflation declined to record lows in India and Nepal, while it remained relatively low compared to historical figures in Pakistan, Bangladesh, and Iran.

Inflation is expected to be 5.4% in 2018 and 5.5% in 2019 in Bangladesh. According to the report, the budget deficit continues to be moderately high in Bangladesh at around 5 percent of GDP.

The report also states that East and South Asia will remain the most dynamic and dynamic regions of the world, supported by robust domestic demand and accommodative fiscal measures.

In 2017, regional GDP grew by 6%, ahead of the rest of the world. The economy is expected to remain relatively stable at 5.8% in 2018 and 5.9% in 2019.

In South Asia, the economic outlook remains stable and favorable, driven by robust private consumption and sound macroeconomic policies.

"The positive outlook will contribute to further progressive progress in labor market indicators and a reduction in poverty rates, while monetary policy positions are moderately accommodative, while fiscal policies place a strong emphasis on on investment in infrastructure. "

Despite improving short-term prospects, the global economy continues to face risks, including changes in trade policy, a sudden deterioration of the global financial situation, and increasing geopolitical tensions .

The global economy is also facing longer-term challenges.

The report highlights four areas in which improving the macroeconomic situation opens the way for a policy to address these challenges: increasing economic diversification, reducing inequality, supporting long-term investment, and addressing institutional inadequacies.

The report notes that reorienting policy to address these challenges can generate stronger investment and productivity, higher job creation, and more sustainable medium-term economic growth.

"In South Asia, the reform agenda may suffer some setbacks, while political instability may dampen investment prospects."

The current macroeconomic environment in the region encourages policymakers to tackle longer-term issues and make greater progress on structural reforms, the report says.



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