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.”