Staff Reporter :
The World Bank has said Bangladesh’s economy would grow by 6.2 per cent in the current fiscal (2014-15). The government’s target is however 7.3 per cent.
This forecast assumes continued macroeconomic stability and a boost for domestic consumption from remittances, export growth and domestic demand from public infrastructure investments, the World Bank (WB) said in its latest report titled “Global Economic Prospects” released on Tuesday from Washington.
The economic growth was recorded at 6.1 per cent during the fiscal 2013-14. The government’s target was 7.2 per cent.
The WB is also highly optimistic about the inflow of remittance to the country and export growth if a political stability could be maintained. In South Asia, the report said, growth rose to an estimated 5.5 per cent in 2014 from a 10-year low of 4.9 per cent in 2013.
Regional growth is projected to rise to 6.8 per cent by 2017, as reforms ease supply constraints in India, political tensions subside in Pakistan, remittances remain robust in Bangladesh and Nepal, and demand for the region’s exports firms.
“Past adjustments have reduced vulnerability to financial market volatility. Risks are mainly domestic and of a political nature. Sustaining the pace of reform and maintaining political stability are key to maintaining the recent growth momentum,” it added.
Highlighting the global economic prospect, the report said that after growing by an estimated 2.6 per cent in 2014, the global economy is projected to expand by 3 percent this year, 3.3 per cent in 2016 and 3.2 percent in 2017, predicts the WB reports which publish twice a year.
“Following another disappointing year in 2014, the developing countries should see an uptick in growth this year, boosted in part by soft oil prices, a stronger US economy, continued low global interest rates, and receding domestic headwinds in several large emerging markets,” according to the report.
Developing countries grew by 4.4 per cent in 2014 and are expected to edge up to 4.8 per cent in 2015, strengthening to 5.3 and 5.4 per cent in 2016 and 2017, respectively, it forecast.
WB observed that growth in oil-importing countries was broadly flat in 2014, while activity in oil-exporting countries recovered slightly after contracting in 2013. Fiscal and external imbalances remain significant. Regional growth is expected to pick up gradually to 3.5 per cent in 2017 (from 1.2 per cent in 2014).
