The World Bank has forecast a growth of the country's gross domestic product (GDP) at 7.2 per cent for 2019-20 fiscal year.
The financial institution made the projection in statement on its website summing up a report titled ‘Bangladesh Development Update October 2019: Tertiary Education and Job Skills’ launched at its Dhaka office today (Thursday).
The Bangladesh economy sustained strong growth in 2018-19 fiscal year led by rising exports and record remittances, said the report.
Warning about an uncertain global outlook and domestic risks in the financial sector, the report said exchange rate appreciation is also a challenge for Bangladesh’s trade competitiveness.
Reforms in the financial sector, including revenue mobilisation and doing business, will be essential for progress, it added.
The World Bank report also urged closing the infrastructure gap and timely implementation of the Annual Development Plan.
World Bank Country Director for Bangladesh and Bhutan Mercy Miyang Tembon said, "Bangladesh’s economy is projected to maintain strong growth backed by sound macroeconomic fundamentals and progress in structural reforms."
"To achieve its growth vision, Bangladesh will need a high-productivity economy. Human capital development that is responsive to labor market demand for higher-level skills and to rapid technological advancements will be crucial.”
World Bank Senior Economist and co-author of the report Bernard Haven said, " Labor market surveys repeatedly show that employers struggle to fill high-skill positions such as technicians and managers."
“To bridge the demand and supply gap, investments in skills training, equitable access for female and poor students, public funding mechanisms to develop market-relevant skills and an effective regulatory and accountability framework are needed.”
The World Bank is among the first development partners to support Bangladesh following its Independence and has ever since committed more than $30 billion in grants, interest-free, and concessional credits to the country.