Dhaka, Bangladesh (BBN)-The World Bank estimated that Bangladesh incurred a loss of US$1.4 billion in the current fiscal year due to volatile political atmosphere.
The country’s GDP (gross domestic product) growth in the fiscal year will stand at around 5.4 percent due to the political turmoil it had suffered, the World Bank said on Wednesday.
The political turmoil in the last quarter of 2013 inflicted a value-added loss of about US$1.4 billion, of which 86 percent was in services, 11 percent in industry and the remaining 3 percent in agriculture, said the report that was released on Wednesday.
The global lender came up with the observation while presenting ‘Bangladesh Development Update, April 2014’ at a press conference held at its Dhaka office.
It however observed that the GDP growth in Bangladesh may rise to a potential 6.5 percent within a couple of years if stability prevails.
The government earlier had set a 7.2-percent GDP growth target but Finance Minister AMA Muhith during a half-yearly statement on the economy revised it at 6.5 percent.
Presenting the latest data, lead economist of WB’s Dhaka office Dr Zahid Hussain said 5.4 percent growth is not unsatisfactory at all.
A recovery in export growth and increases in public expenditure are likely to help achieve a 5.4 percent GDP growth in the current fiscal year, slightly higher than the average for developing countries but lower than last year’s 6.2 percent, he said.
The WB sees growing investments in power and roads; manage the transition in readymade garments; and stem the decline in remittances as immediate challenges.
BBN/ANS/AD/09Apr14-&7:00 pm (BST)