Political unrest to affect economy: CPD

Centre for Policy Dialogue (CPD) on Monday observed that the continuation of the current political unrest will leave an unfavourable footprint on economic performance over the 2013-14 fiscal.

The observation came in a CPD report on macroeconomic performances in the fiscal 2012-13, released at a press conference at the CPD office.

Reading out the summary of the report, CPD executive director Mustafizur Rahman said confrontational and uncertain political environment had direct and indirect implications for economic performances in the 2012-13 fiscal.

Many of the objectives and indicators are likely to remain unattained if the fragility of the institutions and the looming political uncertainties are continued, he added.

Mustafizur said, “The political instability in the run-up to the national parliamentary election has become a common phenomenon. On previous three occasions since the 1990s, imposition of frequent hartals were observed in the fifth year of the governments that caused dwindling economic performances in the aforementioned fiscal years.”

He recommended that if the political parties fail to come up with the solution of an acceptable election through amicable engagement between each other, it’s implications on the economic performances will be severe.

As of the first three quarters of the 2012-13 fiscal, the GDP (Gross Domestic Product) growth rate stands at 6 percent, much short of the target of a 7.2 percent growth under the 6th Five Year Plan, said Mustafiz.

The estimated GDP growth in the fiscal 2012-12 stands below the GDP growth of 6.2 percent experienced in the previous fiscal.

The deceleration of the GDP growth is accompanied by drastic fall in private investment, he said. (Source: UNB)

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