Dhaka (AsiaNews/Agencies) - Bangladesh's economy is set to grow at the fastest pace in at least 34 years, this according to the Ministry of Finance and the International Monetary Fund, which has made further loan payouts citing greater calm following last January's elections.
Gross domestic product will expand 7.3 per cent in the fiscal year starting 1 July, Finance Minister Abul Maal Abdul Muhith said in his budget speech yesterday, compared with a revised 6.12 percent projection for this year.
That would be the fastest pace in World Bank data going back to 1980 and the highest since Bangladesh split from Pakistan in 1971, this according the Centre for Policy Dialogue, a Dhaka think tank.
"We have successfully mitigated the pre-election damages and the economy now is back to its robust best," Muhith said.
Bangladesh had lowered its current-year growth target from 7.2 per cent after political unrest disrupted business and destroyed property.
Despite challenges to the results, recent elections have brought some stability to the country. However, renewed violence remains a major threat.
In fact, "It will be a pleasant surprise if Bangladesh can achieve the 7.3 per cent GDP growth," said Fahmida Khatun, head of research at the Centre for Policy Dialogue. "Investment and job creation are not picking up. These are the two main drivers of economic growth."
For its part, the International Monetary Fund (IMF) projected a 6.25 per cent GDP growth for the next fiscal 2014-15.
After the fourth review of the Extended Credit Facility (ECF) programme in Bangladesh, the IMF has decided to release US0.9 million credit, fifth trance of its total 6 million loan pledged in 2012, very soon.