Dhaka, Bangladesh (BBN)-Bangladesh’s economy is expected to grow at 6.5 per cent in the financial year (FY) 2015-16, said a latest World Bank report on Tuesday.
The World Bank also said that the Bangladesh’s economy is on a stable path with a positive near-term macroeconomic outlook.
All this information came as the World Bank’s Dhaka office released its report ‘Bangladesh Development Update’ on Tuesday, suggesting that the government should boost private sector investments.
“Bangladesh’s economy is expected to grow at 6.5% in financial year 2015. It is facing a declining trend in international competitiveness coupled with external and domestic risks. However, the overall economy is expected to remain stable,” said the report.
The Bangladesh government however earlier projected a 7 per cent GDP growth in this fiscal.
On the other hand, the Asian Development Bank in ‘Asian Development Outlook 2015’ in September predicted that the growth would be around 6.7 per cent.
Bangladesh needs to sustain Gross Domestic Product (GDP) and remittances growth, create jobs, contain inflation, and improve the quality of public service delivery to reduce extreme poverty and boost shared prosperity, the highlights of the report added.
To achieve the target, the policy makers of Bangladesh should plan to tackle macro slippages such as the large current account deficit, exchange rate volatility and rising inflation.
They should stem financial sector insolvency and prioritize the completion of ongoing reform initiatives, the report further added.
The latest Bangladesh Development Update notes declining inflation, rising reserves, contained fiscal deficit and stable public debt. Downside risk persists for the economy regarding both domestic and external factors.
It also said that international competitiveness on both demand and supply sides show a declining trend.
Headcount poverty based on PPP US$ 1.25 per day is projected to have declined from 43.5 percent in 2010 to 38.4 percent in 2015.
BBN/SS/AD