World Economic data outlook - IMF Expect Bangladesh GDP Growth rate 2013 : Noting that Bangladesh's economy ~ despite global headwinds ~ performed well in 2102, the International Monetary Fund (IMF) today projected the country's growth rate at 6 per cent in the fiscal year 2013.
“Looking ahead, we expect real GDP to grow by about six per cent in FY13, reflecting external uncertainties and the broader global slowdown,” the IMF said at the conclusion of its consultations with Bangladesh.
“Despite global headwinds, Bangladeshi economy performed well in FY12 (July 2011-June 2012), with preliminary estimates pegging growth at 6. percent, the IMF said.
“Inflation pressures have eased, given moderate monetary tightening and lower food price inflation. The current account deficit has narrowed and foreign reserves have rebounded as a result of policy adjustments and remittance flows that compensated slowing export growth,” it said.
Following its consultation, the IMF said Bangladesh has agreed to contain its budget deficit (excluding grants) to 4.5 per cent of GDP in FY13, including the settlement of fertilizer subsidy overruns from FY12, with moderate consolidation over the medium term.
“Underpinning these targets are further tax policy, revenue administration, and public financial and debt management reforms. As a center piece of tax reform, a landmark VAT law was approved by the National Parliament in late November 2012.
“The new law, slated to be implemented by 2015, represents an important step forward in tax modernization and should yield revenue gains in support of Bangladeshs development priorities,” the IMF said.
IMF said the Bangladeshi government will pursue legal and prudential reforms to strengthen financial sector governance and oversight and reinforce supervisory mandate and capacity of the Bangladesh Bank.
Noting that Bangladesh Bank remains committed to maintaining a restrained monetary policy until nonfood inflation is firmly entrenched in the single digits, backed by an appropriately tight fiscal policy, IMF said to this end, the bank will rely increasingly on indirect instruments for conducting monetary operations in 2013, letting price signals gain traction in the face of a more liberalised interest rate regime
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