GDP growth is expected to bounce back to 6% in FY26
The growth is 1.6 percentage points lower than the provisional estimate
The Asian Development Bank (ADB) has projected Bangladesh’s GDP growth rate to slow to 4.3 percent in fiscal year (FY) 2025, reflecting a subdued outlook amid political uncertainty, supply disruptions and tight monetary policy.
The GDP growth target may be brought down to 5.25 percent in the revised budget for the current fiscal year due to the damage caused by multiple floods and the interim government’s contractionary monetary policy to contain high inflation.
Bangladesh recorded its lowest economic growth in the past five quarters in the last quarter of fiscal 2023-24 due to contractionary monetary and fiscal policies to tackle the dwindling forex reserves and high inflation.
While a privileged minority, sitting in their high castles, continue to enjoy a larger and larger share of the fruits of “development,” it is becoming obvious that the vast majority are increasingly struggling.
Bangladesh’s economy has grown at a faster pace, albeit marginally, in the current fiscal year than the previous one although the production of industrial goods and agricultural commodities recorded reduced growth.
International Monetary Fund (IMF) has defended revising down its forecast for Bangladesh’s GDP growth in fiscal year 2023-24, saying it was “pretty reasonable” amidst various ongoing challenges, including elevated inflation.
The International Monetary Fund (IMF) has revised down growth forecast for Bangladesh’s economy to 6 percent for the fiscal year 2023-24, lower from its previous projection of 6.5 percent.
Budget implementation capacity of Bangladesh has been falling consistently for the last seven fiscal years, exposing poor capacity of government agencies, The Daily Star reported on June 4, 2018. Despite a sustained increase in GDP growth rate for over a decade, the implementing capacity has dropped from 97 percent in 2010-11 to a mere 78 percent in 2016-17, it further adds.
Bangladesh has become one of Asia's most remarkable and unexpected success stories in recent years. Once one of the poorest regions of Pakistan, Bangladesh remained an economic basket case—wracked by poverty and famine—for many years after independence in 1971. In fact, by 2006, conditions seemed so hopeless that when Bangladesh registered faster growth than Pakistan, it was dismissed as a fluke.
At a recent press conference, representatives of the World Bank (WB) questioned the 7.65 percent economic growth estimate and the estimate of 7–8 percent growth of domestic demand that the Bangladesh Bureau of Statistics (BBS) came up with for FY17-18. Zahid Hussain, lead economist of the WB's Dhaka office, said there are two causes that could lead to such a spike (growth of employment and labour
Planning Minister AHM Mustafa Kamal is shocked over the downsized projection by the development partners (DP) on the country’s economic growth in the current fiscal year.
The Asian Development Bank projects 7 percent economic growth for Bangladesh for the current fiscal year, much below than the government’s provisional estimate of 7.65 percent.
Bangladesh has achieved a record economic growth of 7.28 percent in the last fiscal year despite a fall in rice production and also in industrial growth. The gross domestic product rose by 0.17 percentage points in fiscal 2016-17 from 7.11 percent in the previous fiscal year, according to Bangladesh Bureau of Statistics data.
Bangladesh has ascertained its growth for the last fiscal at 7.28 percent, highest ever in history of the country’s economy and more than what was targeted.
Debapriya Bhattacharya, the distinguished fellow of CPD, terms the proposed budget for the FY 2017-18 as “economic illusion” saying that there is no clear indication between income and expenditure in it.
Finance Minister AMA Muhith has really dreamt of a big budget in every respect -- from expenditure to revenue generation. And he no longer wants to live in the 6 percent GDP class to push beyond 7 percent. But his big dream promises to put extra pressure on people across the board, as he plans through his VAT and other tax proposals to extract that extra penny from every pocket.
It is well known that since the 1980s, Bangladesh has made astonishing progress on a wide variety of development indicators such as reducing the prevalence of extreme hunger and poverty...
