Bangladesh's GDP to slow to 6.1pc: IMF
Bangladesh's economic growth will slow down to 6.1 percent in 2012 and 2013 due to the gloomy global economy, forecast the International Monetary Fund yesterday.
The country's GDP grew by 6.3 percent in the last fiscal year despite the global crisis and the government's target is 7.2 percent for the current fiscal year.
The growth of the export-dependent economy will slow down as low growth in advanced economies is affecting emerging and developing economies through exports.
Over 70 percent of the country's exports go to the USA and the European Union, most hard-hit by the economic crisis.
Last week, Asian Development Bank also said Bangladesh's economic growth may come down to 6 percent in the current fiscal year due to sluggish exports and a decline in domestic demand.
The IMF, however, said Bangladesh's inflation would ease down to 6.9 percent this year and to 6.4 percent next year from 10.6 percent in 2011.
The prediction came from the Washington-based lender in its latest World Economic Outlook unveiled in Tokyo yesterday ahead of the IMF-World Bank 2012 Annual Meetings.
“Low growth and uncertainty in advanced economies are affecting emerging markets and developing economies through both trade and financial channels, adding to home-grown weaknesses,” said IMF Chief Economist Olivier Blanchard at a press briefing.
Blanchard presented a gloomier picture for the global economy than predicted a few months ago, saying prospects have deteriorated further and risks increased.
Overall, the IMF's forecast for global growth was marked down to 3.3 percent this year and 3.6 percent for 2013.
The economist urged countries to continue with accommodating monetary policy which he said was a very powerful force for growth on its own.
"Continue with fiscal consolidation and here, our advice still holds: Don't do it too slow, don't do it too fast."
Over 10,000 central bankers, ministers of finance and development, private sector executives, academicians, and journalists have gathered at the Japanese capital to discuss global economic issues.