GDP growth to reach 7.65pc in FY18
“The GDP growth will be 7.65 percent in this fiscal year. It’s our initial and provisional estimation,” Planning Minister AHM Mustafa Kamal said while briefing reporters after the ECNEC meeting.
The minister first made the disclosure at a meeting of the Executive Committee of the National Economic Council (ECNEC) held at the NEC conference room in the city’s Sher-e-Bangla Nagar area with ECNEC Chairperson and Prime Minister Sheikh Hasina in the chair.
Bangladesh attained a robust growth of 7.28 percent in the last fiscal year (2016-2017).
According to the Bangladesh Bureau of Statistics (BBS), the growth rate in FY2016 was 7.11 percent.
Bangladesh economy eventually passed 7 percent growth in FY2016 after being ‘stuck’ in the 6-7 percent range for nearly a decade.
“It has been possible to gain such achievement due to dynamic leadership of Prime Minister Sheikh Hasina as she could involve the country’s people in the development process,” the Planning Minister said.
About the GDP growth, Mustafa Kamal said the GDP growth rate was 6.06 percent in 2013-2014 fiscal year, while 6.55 percent in 2014-2015 and 7.11 percent in 2015-2016.
He said the provisional estimate of GDP growth was made on the basis of three main sectors – Agriculture, Industry and Services.
The services sector is making the highest contribution to GDP in the current fiscal with 52.18 percent, according to factsheet of the BBS provided during the briefing.
The contribution of industrial sector to GDP is 33.71 percent, while that of agriculture sector is 14.10 percent.
In the last fiscal year, the contribution of the services sector to GDP was 53.85 percent, while that of industrial sector was 32.42 percent and the agriculture was 14.74 percent.
The growth rate in the agriculture sector is 3.06 percent, while that in the industry sector is 11.99 percent and in the services sector is 6.33 percent in the 2017-2018.
The investment ratio to GDP has increased to 31.47 percent in this fiscal year from 30.51 percent in the last fiscal year (FY17).
The BBS data showed that the private investment is 23.25 percent of GDP, while the public investment is 8.22 percent. In the last fiscal year, the private investment was 23.10 percent of GDP while that of the public investment was 7.41 percent.
The Planning Minister said the GDP size has been increased to US$ 275 billion (Tk 22,38,498 crore) in the current fiscal year from US$ 249 billion (Tk19,75,815.4 crore) in 2016-2017 fiscal year.
He said the GDP size has largely increased in the last few years. In terms of GDP size, Bangladesh is now 43rd largest economy in the world, which was 58th largest economy in 2010, he added.
“If we’re able to leave 23 countries behind us in the next 23 years, we’ll be the 20th largest country in the world considering GDP by 2041. The 20th largest GDP means we are a developed nation,” Kamal added.
Noting that the overall macro-economic situation is quiet good, he said Bangladesh is doing well in remittance inflow and export as well as keeping the inflation under control.
“The condition in all GDP-supportive components is good . . . We achieved massive growth in manufacturing sector,” he said, adding that climate related problems are the major concerns.
Kamal said that the planning commission releases two estimates-provisional and final- over the GDP growth rate every year. The final estimate will be released after the fiscal year.