The IMF has projected a less than six per cent growth rate for Bangladesh this year, saying that months of unrest and uncertainty in the run up to the January general elections has a taken a toll on the country's economy.
"Real GDP growth is expected to be below six per cent for fiscal year 14 (July 2013-June 2014) as unrest and uncertainty in the run-up to the January 2014 general elections have taken a toll on the Bangladesh economy," said IMF official Rodrigo Cubero, who recently led a delegation to Bangladesh.
Cubero said imports, remittances, tax collections, and credit growth have all slowed.
"Inflation has edged up, largely due to food supply disruptions. Exports, however, have proven resilient, helped by Bangladesh's growing share of the global textile market. Provided political stability continues and uncertainty abates, growth should rise above six per cent in fiscal 15," he said.
The IMF mission visited Dhaka during March 19-April 2 to conduct the fourth review under the three-year, USD 985.66 million, extended credit facility (ECF) arrangement.
The mission met with the Minister of Finance, Minister of Planning, Finance Secretary, Banking Secretary, Bangladesh Bank Governor, other senior officials, and development partners.
Cubero said throughout the recent turbulent period, macroeconomic policies have been sound, the government's economic program remains on track, and there has been good progress on structural reforms.
As a result, the mission and the authorities have been able to reach a staff-level agreement on the quantitative targets and policies needed to complete the fourth review under the ECF arrangement, a statement issued by the IMF said.
This agreement is subjected to review by the management and the Executive Board of the IMF.
Upon the Executive Board's completion of this review, which is expected in May 2014, about USD 140.5 million would be made available to Bangladesh, it said.
