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Dhaka Tribune

WB stresses raising investment for 8% GDP growth

Update : 14 Dec 2015, 07:14 PM

World Bank’s Chief Economist Kaushik Basu said Bangladesh could lift its annual economic growth to an 8% rate in next three years if the country increased GDP-investment ratio to 34% from the current 29% and met infrastructural needs.

He said World Bank and Bangladesh government had built a new partnership with each other as the country was among top receipients of the lender’s International Development Association (IDA) loans.

Basu said Bangladesh had recently graduated to lower middle income status as the World Bank assessed the country’s economic progress, a group in which neighbouring India also falls.

“Bangladesh’s economic growth rate is remarkable when other economies slow down around the world,” he told journalists after a meeting with Finance Minister AMA Muhith in Dhaka yesterday.

“Bangladesh’s growth should not be stuck within 6%, rather that should be even higher. Our observation is that Bangladesh is going toward that goal,” Kaushik said.

He said if the growth rate was 8%, the country would be one of five economies in the world now expanding at that rate. Kaushik suggested the government taking “strong plans” to raise GDP-investment ratio.

Finance minister, however, plans a lower GDP-invesment ratio than that of Kaushik.

“We focused on dealing with poor investment situation in the country and plan to increase GDP-investment ratio to 32% for an 8% economic growth. The new partnership with the World Bank will be helpful here.” 

About imroving the GDP growth rate and making investment, Muhith said the government would introduce a capital budget next fiscal year to address the current low-investment situation. He also stressed the need to improve private sector investment situation. 

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