UNB, Dhaka :
Unnayan Onneshan, an independent multidisciplinary think-tank, projected that the real rate of growth in GDP in the current fiscal year may decline to 5.65 percent.
The research organization in its current issue of the Bangladesh Economic Update on Monetary Policy Statement (MPS) said the falling private sector credit growth will continue to suppress investment demand, resulting in decline in rate growth in gross domestic product (GDP).
The UO, however, states that the growth in GDP may fall below the decadal average of six percent due to fiscal and monetary management trap, functioned by lack of policy farsightedness and political contestations Moreover, it observe that reduction in investment
and growth for the successive three years from those of the preceding ones, on the one hand, and the increase in inflation on the other may cause pressure on the macroeconomic stability of the country.
Urging for a new policy approach, the think-tank said: “Recent declining trend in private sector credit growth, which has factually been causing the growth of the economy to decline in the last three years in a row, can be restrained through a harmonisation of fiscal and monetary policy.”
