A mission of the International Monetary Fund (IMF) today forecast that Bangladesh’s economy will grow by 6 percent in the current fiscal year, down from the government’s target of 7.3 percent and World Bank’s 6.2 percent.
“This year, economic activity in Bangladesh has maintained momentum, buoyed by robust domestic demand. However, the resurgence of unrest in recent months is taking a toll on the economy,” said Rodrigo Cubero, IMF Deputy Division Chief for the Asia and Pacific department, at a media briefing at the finance ministry office in Dhaka.
“For FY 2015 as a whole, we expect real GDP (Gross Domestic Product) to grow by about 6 percent. Inflation has eased against lower food prices, but faces upside risks from unrest related supply disruption,” Cubero said after the reviews of fifth and sixth Extended Credit Facility (ECF) over nearly 15 days in Dhaka.
A three-year ECF arrangement worth $887.64 million was approved for Bangladesh on April 11, 2012 for a total amount. The release of the final two installments of the ECF programme, worth around $280 million, is now pending upon the decision to amend the existing VAT Act.
The World Bank, another global lending agency, in its Global Economic Prospects’ (GEP) report in January has projected that Bangladesh will achieve a 6.2 percent GDP growth in the current fiscal year (2014-15) against the government’s target of 7.3 percent.
Source: The Daily Star
