Dhaka: The World Bank on Saturday expressed suspicion over the 7.05 percent GDP growth estimated by the government for the current fiscal 2015-16 saying that most related indicators are not consistent with the projection.

‘What messages we are getting from other growth related indicators, except export and credit flow to private sector, do not match with the projected (7.05 percent) growth rate,’ said Zahid Hussain, the Lead Economist of the global lender.

He was addressing a programme marking the release of Bangladesh Development Update at the World Bank’s Dhaka office in the city.

No growth related indicator except export and credit flow to private sector grew faster (July-February) in the current fiscal year compared to the previous fiscal, said Zahid Hussain.

As per the update report of the World Bank, 13 out of 15 indicators are not consistent with the official estimated 7.05 percent GDP growth.

The report said the government could achieve 14.4 percent growth of NBR Tax revenue in the first eight months of the fiscal 2015-16, but the figure was 16.2 percent during the same period of the fiscal year (2014-15).

It also said the implementation rate of the Annual Development Programme (ADP) was 41.1 percent in the first nine months in the current fiscal, but the rate was 43.8 percent during the same period of the previous fiscal.

Though the World Bank did not specify its prediction over Bangladesh’s GDP growth rate in the current fiscal 2015-16, it projected 6.8 percent GDP growth for the next fiscal year (2016-'17).

Placing the report, Zahid Hussain said Bangladesh economy is doing well despite internal and external headwinds.

He, however, said there is concern about the sustainability of the growth and the private investment rate is still weak.

Among 118 large countries with over 20 million population across the world, only 12 countries, including Bangladesh, was able to attain 6 percent or 6-plus percent growth rate in this fiscal, he said.

About private investment rate, he said the stagnation the private investment experienced, particularly after 2015 has yet to remove, rather the private investment compared to GDP declined in the 2015-16 fiscal.

Noting that only political stability is not enough to attract private investment, he said, ‘The environment, particularly in the energy sector and infrastructures, is needed for this. Uninterrupted power supply and improved connectivity are essential.’

Recalling that the private investment rate was 21.78 percent of GDP in the last fiscal, he said Bangladesh needs to come out from the 21-22 percent trap to reach the GDP growth rate to 7-8 percent.

Though sustained stability prevails in macro economy due to disinflation, the rise in reserve and fall rate in lending interest rate, some concerns remain over reserve shortfall, speed and quality of development spending, financing composition and banking confidence, he said.

Hussain said Bangladesh needs to improve its human resources and quality of education, create employment to become a middle-income country.

If Bangladesh can mark 8 percent of GDP growth regularly, it will be possible to turn a higher-middle-income country over the next late 30s, he added.

He suggested Bangladesh to reform energy pricing for attracting investment in primary energy and make doing business easier brining reforms in mediation of civil and commercial cases, companies act, custom act and property registration.

The WB report said Bangladesh economy faces some risks as uncertainty may impact growth and inflation, continued weakness in the banking sector could undermine credit and growth prospect, a protracted slowdown in the European country could hurt exports of Bangladesh and the outlook for remittance is uncertain.

WB Country Director Qimia Fan also spoke on the occasion.