Home Business The growth of the country will decrease in the current financial year, the forecast of the World Bank

The growth of the country will decrease in the current financial year, the forecast of the World Bank

by Afonso
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In the budget of the current financial year, the government has set a target of taking the growth of the country’s gross domestic product or GDP to 7 and a half percent. Although donor agency World Bank says the country’s economic growth could be 5.6 percent in 2023-24 financial year.

Such information was reported in the Global Economic Prospects Report published on Wednesday. According to the World Bank, high inflation, foreign trade pressures, financial sector risks have had a negative impact on growth. By doing this, the growth can be 5.6 percent. However, in the report published last June, the company projected a growth of 6.2 percent.

In the updated report, the World Bank also said that the inflation rate of Bangladesh will continue to rise this year. Imports will slow down as foreign exchange reserves are on the decline. Export earnings are also not promising.

Also ahead of the just-concluded national elections, political uncertainty has also hurt private investment. The organization fears that all these will have an impact on production and growth. Analysts are suggesting necessary steps to stimulate the economy.

Economist KS Murshid said, ‘Last year did not go well for us so this 5.5 is not bad. However, even if it is at this level, it is not bad at a time when there are all the social problems, including the dollar crisis.

He also said that it will take some time to recover from this situation, it is not possible to get a solution soon. Besides, our government should put the right people in the right place, then there will be a good output.

According to the World Bank, the growth rate will pick up slightly in FY 2024-25 as inflationary pressure eases. The growth in the next financial year may be 5.8 percent.


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