Warns factory accidents could moderate pace of RMG export growth<\/strong>
\nThe World Bank on Thursday stuck to its projection that the country\u2019s GDP growth would be 5.8 per cent in the outgoing fiscal year despite the Bangladesh Bureau of Statistics\u2019 estimate of 6.03 per cent and the finance minister\u2019s hope of 6.3-6.8 per cent growth.
\nThe international lender also warned that the recent factory accidents could moderate the pace of accelerated growth of Bangladesh\u2019s garment exports.
\nThe WB in its latest Global Economic Prospects (GEP)\u00a0 report released on Thursday said that the economic growth would slow down to 5.8 per cent in FY 2012-13 because of macroeconomic tightening by the government, intensified domestic constraints and political unrest.
\nThe WB in its earlier GEP report in January had projected the growth at 5.8 per cent in the current FY lowering the projection of 6 per cent growth made in October 2012 issue of GEP.
\nThe BBS in May estimated that the growth would be 6.03 per cent because of fall in agriculture, industrial and investment growth.
\nFinance minister AMA Muhith, however, in his budget speech ditched the BBS estimate for the second consecutive year.
\nMuhith claimed that the BBS did not take the actual agriculture growth into account and that he thought that the GDP growth would be 6.3-6.8 per cent in the current fiscal year that ends on June 30.
\nThe World Bank report said that the country\u2019s economy had grown by 6.2 per cent in the last fiscal year of 2011-12 against almost similar estimate of BBS of 6.23 per cent.
\n\u2018Weakening external demand, domestic supply constraints [including unreliable electricity provision], and social unrest resulted in growth slowing to 6.2 per cent in FY2011-12 from 6.7 per cent the previous fiscal year, with a further slowdown expected for FY2012-13,\u2019 it said.
\n\u2018Subsequent macroeconomic tightening and intensified domestic constraints, combined with disruptions caused by political unrest, contributed to the projected slowdown [to 5.8 per cent] in FY2012-13,\u2019 it said.
\nThe report said that Bangladesh\u2019s export volume growth accelerated as a result of strengthening demand for its garment exports although recent factory accidents like Rana Plaza collapse could moderate the pace of increase.
\nThe report said that inflation pressure was still high in India and Bangladesh.
\nIt warned that countries like Bangladesh, India and Nepal which were entering election process could face further inflationary pressure and internal and external imbalances because of spending pressures associated with elections.
\n\u2018Risks in the post-election period include the possibility that past reforms are reversed or implementation delayed,\u2019 it said.
\nThe WB, however, said that despite decline in exports, Bangladesh\u2019s current account position improved because of falling import and increased remittance.
\nIt projected that the country\u2019s GDP growth in the coming fiscal year 2013-14 would be 6.1 per cent against the government target of 7.2 per cent.
\n\u2018Several domestic weaknesses, including infrastructure gaps [electricity and roads] and social unrest are expected to hold back a firmer recovery,\u2019 it said.<\/p>\n

-With New Age<\/span> input<\/p>\n","protected":false},"excerpt":{"rendered":"

Warns factory accidents could moderate pace of RMG export growth The World Bank on Thursday stuck to its projection that the country\u2019s GDP growth would be 5.8 per cent in the outgoing fiscal year despite the Bangladesh Bureau of Statistics\u2019 estimate of 6.03 per cent and the finance minister\u2019s hope of 6.3-6.8 per cent growth. … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[4],"tags":[209,8004,12012,1657],"yoast_head":"\n