Six pc GDP growth possible if ADP implemented properly: BB Governor

BSS, Dhaka

The country would experience 6 percent GDP growth, outperforming from 5.5 to 6.0 percent projected in the budget for FY10, provided that global economic recession recovers faster and initiatives proposed in the budget are implemented right earnestly.
Bangladesh Bank Governor Dr Atiur Rahman said this while announcing the Monetary Policy Statement, the regular half yearly release, outlining the stance for FY10 particularly in the first half (H1) for July to December 2009.
To help the real economy sustain growth momentum in the recessionary global environment, BB shall continue maintain easy credit condition in FY10, with special attention to the credit needs of sectors hurt by the slowdown and of sectors like agriculture and SME thus far inadequately served by market, he said.
The monetary programme for FY10 is designed to accommodate 6.0 percent real GDP growth, with inflation projected at 6.5 percent by June 2010. Besides accommodating public sector borrowing needs estimated in FY10 budget geared towards meeting the challenges from the ongoing global recession, Dr Atiur Rahman said adding "BB's monetary programme will amply accommodate the credit needs of the private sector for attaining the targeted level of real GDP growth."
BB is strengthening oversight on liquidity, capital adequacy and risk management in banks and financial institutions to protect the domestic financial sector from instabilities of the kind now afflicting markets in advanced economies.
BB will continually monitor the unfolding domestic and external developments, and will stand ready to intervene appropriately to meet challenges for macro financial stability and for the growth and poverty reduction aspirations of the government and the population at large.
The agriculture growth of the country will depend, besides favorable weather and reasonable market prices, on adequate and timely availability of irrigation, fertilizer and other inputs to the growers.
The strong leadership in the agriculture ministry and BB's recently announced agriculture credit programmes will hopefully maintain a supportive side siuation in the agriculture sector, he said adding infrastructure inadequacies, particularly of power and gas remain a severe constraints for rapid growth in all economic sectors.
BB will modify monetary stance appropriately towards more active demand management if slow output responses in the prevailing easy monetary conditions tend to escalate domestic inflation, Dr Atiur Rahman said.
Dr Atiur said, unlike most of other economies in the region and elsewhere, output growth in Bangladesh has far been mildly impacted by the ongoing global economic recession; with estimated 5.9 percent real GDP growth in FY09 following 6.2 percent of FY08.