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Global economic crisis, World Bank and Bangladesh November 29, 2008

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World Bank in a recent press briefing in Dhaka projected that GDP growth in Bangladesh might come down to 4.8% in the current fiscal year from the Government projected 6.5% as readymade garments and remittence inflow will suffer due to global financial crisis.

Mirza Aziz, Finance and Planning Adviser, rejected the the idea and hopes that it might cross 6% and expressed wonder on what basis the world bank officials made the prediction.

Bangladesh Bank Governor Salehuddin Ahmed also dismissed the idea and said,’World Bank projection is grossly an underestimation and is not based on critical analysis.’ He urged for ‘ not to rely on numbers alone’ but ‘to make value judgment.’

On the growth of exports, remittence and agricultural output and ease of inflation, BB Governor opined that the economic fundamentals are stable in Bangladesh. He said that export grew by 42.39% in the first 3 months of of the fiscal year while the remittence inflow were about $ 3 billion from July to October in the current fiscal year.

Apex Body of Garments Exporters BGMEA President said, ‘World Bank prediction is whimsical and unrealistic’. He opined ‘the ongoing global economic recession will rather create opportunites for Bangladesh RMG sector and export will not decline as Bank predicted’. He said,’the comment is irresponsiblle’ as ‘ such comment will make the buyers and bankers nervous in taking business decision, which will ultimately create negative impact on the industry’.

BGMEA urged the present & future governments to avoid the World bank fund in formulating next budget.

An ordinary citizen


1. Zahidul Karim - January 7, 2009

I think GDP of Bangladesh will not come down because service sector encompased the major portion of GDP. As the GMG industry is growing rapidly and it takes the basic part of human needs so it will beyond the threat of recent global financial crisis. Remittance might suffer but not in considerable part as manpower export is more than the level of income reduction and job cut.

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