WB's growth forecast lower than govt's

The World Bank yesterday said the Bangladesh economy would grow 6.3 percent in the upcoming fiscal year, which is much below the government's target of 7.2 percent.

The Washington-based multilateral lender also said the country's gross domestic product will expand 6.5 percent this fiscal year -- again lower than the government's estimate of 7.05 percent.

This was disclosed in a report of the WB on the global growth for 2016.

On Tuesday, Finance Minister AMA Muhith said in parliament that multilateral organisations make forecast on the basis of small study whereas the Bangladesh Bureau of Statistics does so on the basis of a large study.

“I can assure you that Bangladesh will achieve the 7.05 percent growth in the current fiscal year, and three months later the multilateral organisations will accept it,” he said.

In its Bangladesh Development Update in April, the WB Dhaka office said it is difficult to reconcile the government's 7.05 percent growth estimate for the current fiscal year with the growth-related indicators, in which Bangladesh is mostly lagging.

Bangladesh is among the top 12 developing countries in the world that achieved 6 plus percent growth in 2016, according to the WB's Bangladesh Update.

Yesterday, the WB also downgraded its 2016 global growth forecast to 2.4 percent from the 2.9 percent pace projected in January.

The move is due to sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade and diminishing capital flows.