IMF retains economic growth outlook for Bangladesh

The IMF made in its latest World Economic Outlook released yesterday, that comes a day after the World Bank has downgraded this fiscal year’s outlook for Bangladesh’s economic growth to 6.3% from the 6.7% as forecasted in January. However, the IMF’s projection is closer to the Asian Development Bank’s forecast of 6.7% and the government’s 7.05%. Recently, the government claimed that the GDP growth has already exceeded 7% in first nine months of the current fiscal year. Retaining its last October forecast, IMF estimated the same GDP growth outlook for Bangladesh. Rejecting the growth projection by the national agencies, particularity World Bank, Planning Minister AHM Mustafa Kamal firmly said the country must achieve more than 7% growth. “Our agriculture and service sector showed strong growth, pushing up the economic growth.” On the world’s overall economic outlook, the IMF cut its global growth forecast for the fourth time in the past year , citing China’s slowdown, persistently low oil prices and chronic weakness in advanced economies. The global economy is expected to grow 3.2% in 2016, only marginally ahead of 3.1% in 2015 and down 0.2 percentage point from the 3.4% forecast in January. “Global growth continues, but at an increasingly disappointing pace that leaves the world economy more exposed to negative risks. Growth has been too slow for too long,” said IMF economic counsellor Maurice Obstfeld in a statement. Growth in advanced economies is projected to remain modest at about 2%, according to the IMF. The recovery is hampered by weak demand, partly held down by unresolved crisis legacies, as well as unfavorable demographics and low productivity growth. While emerging markets and developing economies will still account for the lion’s share of world growth in 2016, prospects across countries remain uneven and generally weaker than over the past two decades. Growth in advanced economies on the other hand remains sluggish. Activity slowed during the second half of 2015, with asset price declines and far tighter financial conditions, and unfavourable demographic trends and financial crisis legacies continuing to hamper a more robust recovery.