TPW Desk:

The current fiscal year GDP (Gross Domestic Product) may be 5.6 percent. Which may increase slightly to 5.7 percent next financial year. Bangladesh Development Update Report has made such predictions.

This was revealed at the World Bank office in Sher-e-Bangla Nagar in the capital on Tuesday. Along with that, the Bangladesh Development Update has been released simultaneously from Colombo, Sri Lanka.

Abdoulaye Sek, Country Director of the World Bank spoke at the press conference organized at the Dhaka office. The report was presented by Senior Economist Ranjit Ghosh and Barnard Haven. Mehreen A. Mahbub, Head of External Relations, World Bank, conducted the press conference.

According to the report, the weakness of Bangladesh’s financial sector, including high inflation, foreign exchange crisis, shrinking imports, low revenue collection, and massive defaults are among the challenges. Due to these reasons, GDP growth will not increase in the current financial year.

It is also said that there are several risks for Bangladesh in the current financial year. One of these is that a slow exchange rate reform may lead to a pull in reserves and a contraction in imports. Inflation can increase by increasing the prices of goods. In addition, financial risks may increase if concerted reform programs are not implemented.

It is also said that defaulted loans were 8.2 percent of total loans in December 2022. It will increase to 9 percent in 2023.