DHAKA: World Bank said GDP growth of Bangladesh is expected to grow at 5.6% in this fiscal year, cutting from its October’s forecast of 6.2%.
Bangladesh Planning Minister, AHM Mustafa Kamal, has ruled out the World Bank’s latest economic growth projection for the fiscal year 2014-15.
At a press briefing held at the planning ministry office yesterday, the minister said that country was able to recover the economic losses faced during the political unrest, as people looked for alternative ways amidst the political turmoil.
“In the recent political turmoil, economic activities were not shut down. It might reduce some profit margin but did not destroy the economy—this conception is not true. ”
According to the World Bank’s latest development update on Bangladesh, political turbulence causing substantial financial losses in three months valued $2.2bn, which is 1% of gross domestic product, dampened the economic growth project.
“If this happens for one year, GDP growth will reduce to 2%, which is not possible,” said the minister.
He firmly stated Bangladesh would not see below 6% growth in any situation.
However, he said, what the damage done in the economy was just losses of some life and rising transport costs.
In the July-March period, industrial growth rose 9.38%, SME sector 10.66%, power 6.58%, construction 16.26%, iron and steel 14.12% and wholesale and retail sub-sector 8.54%.
About the growth forecast gap between World Bank and the government, the Bank’s lead economist Zahid Hussain earlier said, “The official growth estimate is unlikely to capture the production losses in construction, wholesale and retail trades, transport, storage and communication and, public administration, education, health, community and social services due to the political turmoil.”
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