These are inflation, which will remain high despite a slight improvement; pressure from the external sector, mostly due to reserves lower than demand; weakness in the financial sector, on which the central bank is now working; and, political uncertainty.
Uncertainty simply increases concerning the political direction of the country after the 5 August change in political scenario.
Zahid Hussain feels if these areas of uncertainty can be overcome speedily and if nature remains favourable, then it may be possible to achieve a 5 per cent growth in this fiscal.
He said, “We must try to advance towards a 5.2 per cent growth.”
However, CPD’s research director Khandaker Golam Moazzem feels that growth in the current fiscal will not be in accordance to government projection. However, he feels that of the underlying strength of Bangladesh’s economy can be utilised to create a favourable advantageous environment, then perhaps the economy can turn around.
Khandaker Golam Moazzem said, “If we can take a lesson from the problems of the current financial year, we can hope that the economy will regain its vibrancy in the next fiscal.”
* The report has been rewritten in English by Ayesha Kabir