The
Statement of IMF Mission for 5th Review under the Extended Credit Facility with
Bangladesh hailed Bangladesh's progress in macroeconomic stability. Key points
are as follows:
- Despite a moderation in exports, foreign exchange
reserves have continued to increase and have reached adequate levels,
inflation has declined, the fiscal deficit is contained and public debt is
on a downward path;
- With a calmer political environment economic
activity and strong domestic demand, real GDP growth is expected at about
6.25% in FY2015;
- However,
the introduction of a new VAT, a key government reform to boost fiscal
space for development spending, is facing delays.
One wonders: despite serious stagnancy in private investment during the last couple of years, how does IMF see this large growth? Is it a feasible estimation, or is it trying to make the government happy to ensure its interest?
ReplyDelete