Econ­omy Re­port

Southasia - - BRIEFINGS -

The World Bank has pro­jected a growth rate of 6.2 per­cent for the Bangladesh econ­omy this fis­cal year be­cause of a strong do­mes­tic de­mand, the re­vival in pri­vate in­vest­ment ac­tiv­i­ties and re­mit­tance flow. How­ever, the coun­try is ex­pected to raise the stag­nant in­vest­men­tGDP ra­tio to 35 per­cent from the present 28.7 per­cent to achieve the growth rate. This was re­vealed by the World Bank’s Coun­try Di­rec­tor for Bangladesh, Jo­hannes Zutt in the re­port, Bangladesh De­vel­op­ment Up­date.

Ac­cord­ing to the re­port, agri­cul­ture is ex­pected to grow by 2 per­cent, down from last fis­cal year's 3.3 per­cent. The in­dus­try will grow by 9.5 per­cent against 8.4 per­cent in the last fis­cal year and ser­vices sec­tor by 6.1 per­cent from 5.8 per­cent. The poverty in­ci­dence, based on the na­tional poverty line of $1.13 per capita per day, is pro­jected to de­cline from 31.5 per­cent in 2010 to 24.47 per­cent by 2014.

The WB also said that the in­come of the bot­tom 40 per­cent is likely to con­tinue to in­crease be­cause of an in­crease in em­ploy­ment op­por­tu­ni­ties and wages. How­ever, the re­port also warned of some risk fac­tors, es­pe­cially on the do­mes­tic front such as a resur­gence of po­lit­i­cal un­rest, which can “de­press pri­vate in­vest­ment, push up in­fla­tion and po­ten­tially put re­serves un­der pres­sure.”

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