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World Bank projects 7.2% GDP growth for Bangladesh in FY19-20

  • Published at 12:07 pm October 10th, 2019

The economy has to battle several risks to sustain the growth

The World Bank has forecast over 7% GDP growth for the current fiscal year (FY2019-20) of Bangladesh, driven by manufacturing and domestic demands. 

The global lender made the projection in its report titled "Bangladesh Development Update, Tertiary Education and Job Skills," launched at its Dhaka office on Thursday. 

"GDP growth is likely to continue at over 7%, driven by manufacturing," the report says. 

World Bank representatives present at the presentation of the report titled  "Bangladesh Development Update, Tertiary Education and Job Skills," at its office in Dhaka on Thursday, October 10, 2019 Dhaka TribuneThe report added: "Macroeconomic stability is expected to be sustained with less than 6% inflation and modest increases in the twin deficits."

Increasing potential output through structural reforms will be critical for achieving Bangladesh's development aspirations in the medium and long-term, the report also mentions. 

Risks include vulnerability of the financial sector, reform reversals, fiscal pressures and a loss of external competitiveness. 

Output growth will be supported by strong macroeconomic fundamentals; faster implementation of public investments in megaprojects; continued movement of labour away from the agricultural sector; higher domestic demand aided by remittance; and continued export growth as productions shift from China, the report says.