IMF revises Bangladesh's GDP growth projection for current fiscal

DHAKA, Apr 27, 2008 (Xinhua via COMTEX) -- -- The International Monetary Fund ( IMF) Sunday revised upward its earlier projection about Bangladesh 's GDP growth for the fiscal 2007-08 (July 2007-June 2008) from 5- 5.5 percent to 5.5-6.0 percent following improvement in exports and agricultural production.

The IMF, however, suggested the government to look into the inflation, which remains a "key policy challenge for the government," keenly.

"The real GDP growth of 5.5-6.0 percent appears possible for the current fiscal," said visiting IMF adviser for Asia Pacific region Thomas Rambugh here.

He said the IMF is scaling up its projection as the county was recovering well from two rounds of floods and devastating cyclone in the first half of the current fiscal ending on June 30 this year.

The IMF has earlier projected Bangladesh's GDP growth at 5-5.5 percent due to natural disasters and slowdown in economic activities due to factors like anti-hoarding drive and negative growth in export during the first half of the fiscal year.

The IMF, however, changed its stance on the GDP projection for 2007-08 as the country has withstood multiple shocks and managed a turnaround in export, agricultural production and remittance.

However, Rumbaugh said, the inflation would be around 10 percent.

Rumbaugh, who led April 22-28 mission on the country's economic developments and outlook for the next fiscal, said the biggest challenge for the country would be protecting the vulnerable groups from the growing necessity to adjust energy prices.

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