Bangladesh has made significant progress in reducing poverty and is expected to grow at 7.2 percent this year, the World Bank was told Saturday.
Representing Bangladesh along with Sri Lanka, Bhutan and India, before the World Bank, India’s Economic Affairs Secretary, Subhash Garg, said that Bangladesh this year is expected to grow at 7.2 percent. This is slightly 0.2 percentage points below India’s 7.4 percent.
While India is now the fastest growing emerging market economy, leaving China behind, Bangladesh is the second fastest growing economy in South Asia.
“Bangladesh has made significant progress in reducing poverty. Over 20 million people have been lifted out of poverty in last two decades with poverty rate declining below 24 percent,” Garg said in his address to the 97th meeting of the World Bank Development Committee.
Bangladesh he said has also made rapid progress in human development. Its Infant Mortality Rate (34 per 1,000 live births) and Maternal Mortality Rate (176 per 100,000 live births) are much improved and better than the global averages, Garg said.
Bangladesh's progress towards low and middle-income country (LMIC) category and its eventual transition to 'gap' and 'blend' status under World Bank group are testimony of the massive developmental efforts of the Government, Garg said.
In his remarks before the International Monetary Finance Committee on behalf of Bangladesh, Bhutan, India and Sri Lanka, the Governor of India’s Reserve Bank, Urjit R Patel, said the Bangladeshi economy continues to perform well, supported by steady monetary policy management and fiscal discipline.
The real GDP growth in fiscal 2018 ending in June 2018 is projected to remain strong at around 7.7 per cent compared to 7.3 per cent in fiscal 2017. After picking up in mid-FY18 following higher flood-related food prices, inflation is expected to decline to below six per cent, which is the central bank’s 2018 ceiling. In fiscal 2018 so far, point-to-point inflation has risen to 5.8 per cent (annual average CPI inflation is 5.7 per cent) in December 2017.
Bangladesh government, he said, is proactively engaging in bilateral and multilateral trade negotiations towards widening market access and diversifying the export basket.
Patel said monetary policy stance will continue to remain prudent, and the authorities remain vigilant against upside risks to inflation and in readiness for policy rate adjustments.
“Excess liquidity in the banking system has declined in recent months, as credit growth has picked up. The central bank is engaged in strengthening supervision and corporate governance in banks that can lead to lower credit and concentration risks and, subsequently, lower nonperforming loans (NPLs),” he said.