Bangladesh targets a 6.75pc growth rate

Finance Minister AH Mahmood Ali has set a lower target for Gross Domestic Product growth than his predecessor did in 2023 as various macroeconomic indicators including inflation and currency depreciation put the Bangladesh economy under pressure.

The minister targeted a modest increase in the growth rate to 6.75 per cent in the Tk 7.97 trillion budget presented for the 2024-25 fiscal year in parliament on Thursday.

AHM Mustafa Kamal had set the growth target at 7.5 per cent for the 2023-24 fiscal year ahead of the election. It was later brought down to 6.5 per cent in the revised budget. However, the government has not been able to reach that target either.

GDP growth is maintaining its momentum because of the implementation of prudent and appropriate policy measures, the minister said in his budget speech.

The average growth rate between FY 2009-10 to 2022-23 was 6.71 per cent, one of the highest among all countries in the world, he said. It may be noted that the country achieved a record GDP growth rate of 7.88 per cent in FY 2018-19 just a year before the COVID-19 pandemic.

The minister said that despite all the adversity caused by the Russia-Ukraine war and other global unrest, Bangladesh managed to achieve 7.10 per cent, 5.78 per cent and 5.82 per cent [provisional] growth in 2021-22, 2022-23 and 2023-24 respectively.

He called these achievements a testament to the inherent strength of the country’s economy.

“To maintain this growth in future, all reasonable support will be continued to encourage agricultural and industrial production. Side by side, proper implementation of important infrastructural projects and adoption of appropriate action plans aimed at increasing export earnings and remittances will help achieve the desired GDP growth.”