BRI NEWS World Bank forecasts 7.2 pct GDP growth for Bangladesh in 2019-20 fiscal

BRI NEWS

World Bank forecasts 7.2 pct GDP growth for Bangladesh in 2019-20 fiscal

Xinhua

18:34, October 14, 2019

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(Photo: VCG)

DHAKA, Oct. 10 (Xinhua) -- The World Bank has predicted 7.2 percent economic growth for Bangladesh for the current fiscal year 2019-20 (July 2019-June 2020).

The Washington-based lender made the projection in its report titled "Bangladesh Development Update, Tertiary Education and Job Skills," launched at its Dhaka office on Thursday.

According to the report, macroeconomic stability in Bangladesh is expected to be sustained with less than 6 percent inflation.

The World Bank report warns of uncertainty in global economy, domestic risk in financial sector and exchange rate appreciation that may create a challenge for Bangladesh's competitiveness.

Mercy Miyang Tembon, World Bank country director for Bangladesh and Bhutan, said backed by prudent macroeconomic fundamentals and progress in structural reforms Bangladesh economy is all set to maintain its strong growth.

To achieve growth vision, she stressed the need for more human capital development in the country.

World Bank Senior Economist and co-author of the report, Bernard Haven, said Bangladesh should invest more in skills development training, establishing public funding mechanism to develop market-relevant skills and put in place an effective regulatory and accountability framework to bridge the demand and supply gap.

However, Bangladeshi Finance Minister AHM Mustafa Kamal last month said the country's economy looks set to clock double-digit growth in the next five years.

After the completion of the mega Padma bridge, 25 meters in width and 10 km in length, which is being built with Chinese assistance over the Padma River, Bangladesh will see at least one more percent GDP growth, said the minister.

Implementation of many more mega infrastructure projects will also help the country generate the rest of the expected growth, he added.

The Bangladeshi government in June unveiled a record 5.23 trillion-taka (about 62 billion U.S. dollars) proposed national budget, targeting an economic growth of 8.2 percent for the current 2019-20 fiscal year.

Bangladesh's economy grew 8.13 percent last fiscal year, the highest in its history, Kamal earlier said.

A new Asian Development Bank report released last month said that buoyant exports, robust private consumption, higher remittances, accommodative monetary policy, ongoing reform to improve business climate and higher infrastructure spending have helped Bangladesh attain high growth.

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