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IMF: Bangladesh economy may slow down due to soaring food bill
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Bangladesh economy would slow down to 5.0-5.5 percent this fiscal (July 2007-June 2008) as a huge food import bill coupled with slide in export saw the country facing the "biggest" impact on its balance of payment, the International Monetary Fund said Tuesday.

An IMF estimate was quoted by leading English newspaper The Financial Express as saying on Wednesday, the twin disasters of floods and cyclone last year has eroded some 3.7 percent of the country's GDP, exacerbating already slowing growth and increasing food prices.

The IMF estimated that "without additional balance of payments supports, international reserves would be depleted below three months of import coverage by end June 2008."

"The biggest balance of payments impact arises from the need to import large volumes of food," the IMF said, after releasing an emergency natural disaster assistance worth 217 million U.S. dollars early this month.

The country's food and fertilizer import bills would increase by 630 million U.S. dollars due to the twin disasters while the relief and reconstruction costs for the current fiscal are estimated at 850 million U.S. dollars.

The Fund said the country's Gross Domestic Product (GDP) is now projected to grow at 5.0-5.50 percent due to the impact of the twin disasters and the soaring food bill.

(Xinhua News Agency April 23, 2008)

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