The World Bank (WB) Sunday projected 6 per cent growth for Bangladesh in the current 2012-13 fiscal year (FY13) with the observation that the country would continue a healthy growth driven by improving macro-economic management.

“The real GDP growth in FY13 is projected at around 6 per cent and the healthy growth trend would continue in the current fiscal despite various constraints as there is sign of improvement in macro-economic management,” WB senior economist Zahid Hussain told reporters while announcing the country’s Economic Outlook at its local office.

Hussain said Bangladesh’s projected growth in FY13 is among the top 35 out of 150 countries in IMF’s World Economic Outlook.

He said the growth is expected to be better for Bangladesh compared to the neighboring countries when Pakistan’s growth projection for current fiscal is 3.3 per cent, Nepal 3.6 per cent, Malaysia 4.7 per cent, Vietnam 5.9 per cent, India 6 per cent, Sri Lanka 6.7 per cent and China 8.2 per cent.

The World Bank in its outlook said that tighter monetary policy and favourable international price trends decelerated inflation when fiscal policy returned on track, sound exchange rate management eased pressure on the balance of payments, but the growth performance remained below target due to weak global economy and infrastructure constraints.

The lending agency also identified four key internal and external risks that the country would have to face in future.

These are intensification of the euro area crisis, escalation of global food and oil prices as balance of payments vulnerability to an international oil price shock has increased, heightened risk in the banking sector, increased political uncertainty in the run up to elections.

Hussain said that achieving desired 7.2 per cent growth in FY 13 would be a challenging proposition because of two factors - weak external demand and domestic investment constraints continue to drag growth below potential.

Answering a question, The World Bank’s senior economist observed that the country could achieve 6.5 per cent or even more growth rate in the current fiscal if there is close surveillance of macroeconomic development, stronger monitoring and supervision of banks, improved infrastructure management and building policy space by pressing ahead on tax reforms, harnessing concessional external; resources and improving expenditure management.

Addressing the media briefing, WB country director Ellen Goldstein said that they are monitoring the financial sector very closely given the recent concern in the banking supervision side.

“Bangladesh continue to suffer from some other major structural problems including persistent electricity and gas shortages and less than optimal investment climate and this continue to hold Bangladesh’s growth below to what the country is capable of achieving,” she said.

News: The Daily Sun/Bangladesh/22th-Oct-12