World Bank forecast the GDP rate in its report “Global Economic Prospects, January 2014,” published on Wednesday
The GDP (Gross Domestic Product) growth of Bangladesh will be 5.7% in the financial fiscal year of 2013-14 due to political uncertainty in the country.
According to the World Bank’s report, Bangladesh is far away from its 7.2% GDP target in the 2013-14 fiscal year.
World Bank forecast the GDP rate in its half-yearly report titled: “Global Economic Prospects” published on Wednesday.
The WB publishes the report twice a year, one in January and the other in June.
Earlier its June 2013 report showed the global lender forecast that Bangladesh’s GDP growth will be 6.1% in 2013-14 fiscal year. Now, the January 2014 report shows the WB forecast as 5.7% GDP growth.
“Political uncertainty and disruptions in the run up to elections in Bangladesh will continue to slow growth to an estimated 5.7 percent in FY2013-14,” said the report, adding: “Coupled with earlier safety problems in Garment factories, continued social unrest could adversely affect Bangladesh’s manufacturing and export performance.”
However, the report said five years after the global financial crisis, the world economy is showing signs of bouncing back this year, pulled along by a recovery in high-income economies.
Bangladesh’s GDP growth slowed to 6.0% in FY 2012-13 from 6.2% in FY 2011-12.
In the report, the South Asia’s GDP growth is projected to improve to 5.7 percent in 2014 and then to rise to 6.3 percent in 2015 and 6.7% in 2016.
The projected pickup will depend critically on ensuring macroeconomic stability, sustaining reforms, and reducing supply-side constraints.
Apart from South Asia, the World Bank has projected GDP growth around 3.2% in the global economy in 2014, 3.4% in 2015 and 3.5% in 2016.
Source: Dhaka Tribune