Problem areas include a growing budget deficit, high and volatile inflation, exceeded the monetary goals, financial sector weaknesses and growing external imbalances, it was said.
The country's year until June 2011 growth rate of 6.7 percent, supported by strong performance in manufacturing and construction sectors and a bumper crop can only maintain according to the World Bank six-monthly economic update will continue if exports grow.
Lower international commodity prices, particularly the oil and food prices, according to the report are what Bangladesh would work for this.
Bangladesh Government is grappling with high inflation and economic growth to 7.0 percent in the year 2011-12, aims to increase exports and inflows of remittances.
Exports, especially clothing, increased by 22 percent year on year in the three months to September with the Fund of residents work abroad by 9.0 percent slower growth than in the previous year.
AFP adds: global economic uncertainty looks set to Bangladesh ambitious plans for 7.0 percent economic growth in the current financial year for the first time, the World Bank said on Tuesday.
The impoverished South Asian country had the growth target-its highest level since the mid of 1970s-in the budget in June, after it drove 6.7 percent growth in the past year presented 2010-11.
The same extension "only repeatedly" said the World Bank can be if exports continue to grow.
Export growth, which crashed to date, 30 percent in the first two months to August to meager 2.3 percent in September as clothing shipments key markets in Europe and the United States lost steam.
"Bangladesh limited travel to cushion the impact of a second global slowdown has, if it happens," said Sanjay Kathuria, the World Bank lead country Economist for Bangladesh.
"Bangladesh balance of payments may affect it by their impact on exports and transfers, pressure on the exchange rate and the increase in economic insecurity, of investment and growth, weaknesses could," the Bank said.
Foreign payments, to make the 10 percent of gross domestic product (GDP) of the country, have advised Bangladesh workers as part of the Arab spring with 40,000 according to Libya alone to a halt.
Production has hit that hard by an energy crunch, by the suspension of new natural gas connections by public monopolies.
Our staff reporter adds: the rate of investment can impact a slow pace of reforms in Bangladesh, such as inadequate energy supply and poor quality of the infrastructure. The changes in trade reforms and weakening of the financial sector may relate to also export growth and investment.
This was shown economic state of the World Bank (WB), published by the bi-annual on Tuesday.
"Improved fiscal and monetary discipline, combined deficits, with stronger efforts to energy and infrastructure vital for the growth of Bangladesh, to maintain", said Zahid Hussain, WB Chief Economist for Bangladesh.
The Washington sees based lenders however a positive inclination in the direction of the Bangladesh economy, as it can give the lower international commodity prices, particularly oil and food, a breathing space to the country of the current fiscal year.
Senior Economist for Bangladesh in Washington WB Central Lalita Moorty said: "it is for Bangladesh on sound macro-economic management to ensure as expansive economic policy could increase risks on the current account and inflation management make more difficult."
In its economic update, the WB said high and volatile inflation, slowdown of remittances in the last financial year, exceeding the monetary targets, financial sector weaknesses, growing external imbalances and increase budget deficit as well as the composition of the financing of the deficit remain areas for the economy of Bangladesh.
Leading economist of WB Dhaka office Sanjay Kathuria said that Bangladesh has limited room for maneuver to a second global slowdown cushion when it happens.
"Rapid increase in subsidies, continued strong growth of credit to the private sector and Monetary financing of budget deficits led to the decline in maneuverability," he added.
Note, that 2010-11 continue its recent uptrend in growth, the WB said the Bangladesh economy to 6.7 percent in the fiscal year (FY) grew that the growth rate last year good performance in the areas of manufacturing and construction, two consecutive years of bumper crop harvest and high post on the services sector, it added.
But can the country's strong performance in FY11 repeatedly, if exports continue to grow, the recent agreement India and Bangladesh exports benefit clothing, and transfers continue to recover, and the investment is reinforced by improved infrastructure services, makes special.
Found the economic update, a protracted global slowdown Bangladesh could affect across multiple channels.
Meanwhile, other multilateral capital said donor-the Asian Development Bank (ADB)-in its latest development prospects that Bangladesh of economy is expected to 7.0 percent in the current financial year due to the continued export growth and expansive domestic demand for increasing funding and income flows grow.
Source: thedailystar.net
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