BB chief slams WB, IMF over GDP growth forecast

Dhaka, Jan 10 (bdprem.com) – The Bangladesh Bank governor Thursday slammed the International Monetary Fund and World Bank for projecting GDP growth for 2007-08 lower than the central bank's forecast. Central banker Salehuddin Ahmed came down hard on the donor agencies when he was asked to comment on the WB's forecast that the GDP growth would come down to 5.5 percent. The governor indicated that the country's GDP growth for the fiscal year would be between 6 percent and 6.2 percent. On Dec 19, the governor told a press briefing that GDP growth for fiscal 2007-08 would clock around 6.2-6.5 percent. The target for GDP growth in current budget has been set at 7 percent. "The World Bank and IMF do not run Bangladesh. We run the country. They post confusing information upon consulting some people sitting in Dhaka," an angry Ahmed said at a press conference organised to announce the monetary policy for 2007-08 fiscal year. He said they had forecasted the GDP growth after evaluating and monitoring the country's overall situation. "It's not important what they (WB-IMF) say." The World Bank's Global Economic Prospects 2008 released worldwide Wednesday said Bangladesh's GDP growth will be at 5.5 percent for 2007-08, lower than domestic projections, due to twin floods, cyclone Sidr and political tensions. After the floods in October last year, the IMF told the finance ministry in a letter that the GDP growth would fall to 5.5 percent. The WB report published Wednesday echoed the statement. The Bangladesh Bank chief said the government had taken measures including increasing the credit inflow to recover agriculture and other losses after two floods and the cyclone hit the economy hard. "This might lead to a lower GDP growth this year, but it will be something between 6 percent and 6.2 percent," Ahmed said. The WB report also said that rising inflation and food and energy prices, threats to exports and pressure on external balance will affect the country's economy this fiscal year.