In accordance with multiple floods and the interior government’s recessionary monetary policy to carry high distension, the GDP growth target may be rabbit down to 5.25 percent in the stock budget for the current fiscal year due to the damage caused. The antecedent president had set the growth target at 6.75 percent in the original budget.
On Tuesday, a meeting was held at the Chief Adviser’s Office, accompanied by Bangladesh Bank, to deliberate on the hoard budget for the current fiscal year among top officials from the finance, commerce, and planning ministries, with Chief Adviser Professor Muhammad Yunus in the chair.
During the meeting, finance ministry officials also presented the current macroeconomic indicators and the stocked budget.
Moreover, with diminishing overall GDP growth, the Bangladesh Bank introduced a tight monetary policy and increased the policy rate.
As the World Bank, International Monetary Fund (IMF), and Asian Development Bank (ADB) have also reduced their GDP growth projections for Bangladesh for the recent fiscal year.
By political instability in July and August, the ADB has obtained its growth forecast for Bangladesh to 5.1 percent from 6.6 percent, recovering supply chain breakdown.
Through 1.7 percentage points to 4 percent for the fiscal year 2024-25 owing to “significant uncertainties following recent political turmoil” and “data unavailability,” the World Bank has severed its growth forecast for the Bangladesh economy.
An IMF delegation revised the growth to 3.8 percent for those who visited last December.
In the original budget, the price escalation target may increase to 8 percent, up from 6.5 percent.
Whereas the latest data showed that the cost rise in Bangladesh alleviated for the second consecutive month in January to 9.94 percent, it remained high.
Source: The Daily Star
