DHAKA (Reuters) -- Bangladesh's economy will grow six percent or more in 2009-10 fiscal year to June, central bank governor Atiur Rahman said on Tuesday, as the U.S. economy was seeing signs of recovering from recession.

The U.S. is the biggest market for Bangladesh's multi-billion dollar textile exports, a mainstay of the impoverished south Asian country's economy.
“Bangladesh economy will grow at least 6 percent in the current fiscal year ... despite a number of risks ahead,” Atiur told a meeting of American Chamber of Commerce in Dhaka, attended by U.S. investors and traders.
“Even the economy may outpace the target as signs of recovery of economy in the USA have started to resurface and a number of giant financial institutions opted to pay back the money they received as bailout packages,” he said.
The U.S. buys $3 billion worth of ready-made garments and frozen fish from Bangladesh annually, and hold potentials for more exports, officials and traders said.
Bangladesh's exports totaled more than $14 billion and remittances from expatriate workers reached over $9.67 billion in the fiscal year to June 2009.
Bangladesh's gross domestic product grew 5.9 percent in the year.
But the global financial crisis slowed both down in recent months, raising concerns Bangladesh may not achieve a 5.5-6 percent GDP it hoped for the current year.
“We hope the GDP may exceed the conservative growth projection and for that we have focused carefully on infrastructure development through public-private partnership ,” the governor said.
“It is a new concept and to make it successful the World Bank has offered $250 million as a soft loan. We are examining the proposal,” Atiur said.
He said the July-December monetary policy announced this week and the credit policy for farmers, the mainstream of Bangladesh economy, were “proactive” and “investment friendly”.
“I am upbeat about the growth of the economy though the financial crisis has mildly impacted shipments of the country's main export, apparel.”
The governor said if needed the central bank would offer foreign currency support to encourage investment. “What will we do with the huge foreign exchange reserve ? Rather we would invest in the productive sector,” Atiur said.
“Emphasis will also be given on small and medium enterprises apart from farming as these sectors are under-served by the markets though they are powerful players of the economy.”
Special focus will continue to contain prices of food and other essentials to keep inflation at 6.5 percent this year, down from 7.32 percent in the year ago.
He said the central bank would offer loan at the bank rate if any investor came forward to invest in developing green energy like solar and biogas plants, as the country was suffering from inadequate power and gas supplies.
Photo: Bangladesh's central bank governor Atiur Rahman on Tuesday said economy will grow six percent from June 2009 to June 2010.