Bangladesh�s FY12 growth doubtful: WB

The World Bank has described insecure Bangladesh?s projection of 7 percent of GDP in the current financial year.

?Bangladesh its recent upward trend in growth grew by 6.7 percent in FY11, still, ?, the world says published Bank?s latest semi-annual economic update to Bangladesh Tuesday.

?The short-term economic outlook for Bangladesh depend on global economic situation as well as on national policies and administration. In view of growing external and domestic politics, which remains growth prospects in the FY12 are insecure, ?.

The WB statement contradicts with Finance Minister AMA Muhith?s observation, that the country in the current fiscal year reach its annual growth target of 7 percent, only 0.3 percentage points higher than the growth in FY2010-11.

?The projected growth is not ambitious, ? Muhith had told reporters on Sunday. ?Despite problems in balance of payment and high inflation, the target is achievable. ?

But decline of remittances, high inflation, exceeded the monetary goals said the World Bank, weaknesses in the financial sector, growing external imbalances, growing budget deficit and composition of the financing of the deficit remain problem areas.

Officials worry about finances, that the WB observation more the Government can irritate the quotas of the Padma multipurpose bridge still a solid relationship with the WB a persistent problem is facing.

The WB has its promised $1.2 billion-loan allegations of corruption against Communications Minister Syed Abul Hossain suspended the bidding process.

In its observation has the WB pointed out that a continued slowdown in the global economy might affect Bangladesh across multiple channels.

?IT may affect Bangladesh?s of payments through their impact on exports and transfers, pressure on the exchange rate and economic uncertainty, the weaknesses could, increase investment and growth, ?, which says it.

?Bangladesh has limited scope for a second global slowdown cushion, if it happens, said Sanjay Kathuria ? WB lead country Economist for Bangladesh.

?Rapid growth and subsidies, continued strong growth of credit to the private sector and Monetary financing of budget deficits led to the decline of the manoeuvrability. ?

WB Senior Economist for Bangladesh said Zahid Hussain, ?Improved fiscal and monetary discipline, combined with their efforts to address energy and infrastructure deficits are crucial to the growth performance. ? to get

Lalita Moorty, Senior Economist for Bangladesh in Washington added: ?It are for Bangladesh to ensure, as macroeconomics might expansive policies sound macroeconomic management risks increase on the current account and inflation make ? management more difficult.

Bangladesh is already reeling under high inflation, who suffer to fixed and low income groups was 12 percent in September?highest in the last Decade?causing.

The World Bank has found that lower international commodity prices, particularly oil and food prices, would work in favour of the Bangladesh?s.

Source: daily-sun.com

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