Bangladesh estimated to have Sixth Highest GPD Growth in Asia

Bangladesh has the sixth-highest economic growth rate in Asia this financial year. Although it is well below current averages and the level set by the government as pressure on the economy continues. According to the World Economic Forum report released on Jan 10, the country's gross domestic product (GDP) growth will slow to 5.6% in 2023-24, unchanged from the October update.

If the forecast translates into reality, this would be the lowest GDP growth in more than a decade if the Covid-hit 2019-2020 is excluded. In FY20, it plunged to a 30-year low of 3.4 percent owing to massive disruptions caused by the countrywide lockdown imposed to limit the spread of the deadly virus.

The government has decided to revise its GDP growth goal downwards to 6.5 percent for FY24 from the 7.5 percent initially set since the factors that caused the economic growth to decelerate to 6 percent in 2022-23 such as import restrictions and higher material and energy costs, as well as external and financial pressures, persist.

"A higher GDP growth is not our objective this fiscal year. Our aim is to contain inflation and increase the foreign currency reserves," said a finance ministry official. The economic growth is expected to rise in the next financial year as inflationary pressure recedes, the WB said.