Bangladesh has set a target 7.5 per cent gross domestic product (GDP) growth for the upcoming 2022-23 financial year.
Finance Minister AHM Mustafa Kamal disclosed the aim in parliament on Thursday while proposing a Tk 6,78,064 crore budget for FY2022-23, starting from July 1.
“Only in the fiscal year 2019-2020, our economic growth was hampered due to the Covid-19 pandemic. According to the new base year, a record 7.88 per cent growth was achieved in FY2018-2019, but in the following year, FY2019-2020, it decreased to 3.45 per cent due to the pandemic,” he said in the budget speech.
“However, we were able to begin the process of economic recovery very quickly under the guidance of Hon’ble Prime Minister. As a result, 6.94 per cent growth has been achieved in FY2020-2021 despite the continued impact of Covid-19,” said Kamal, terming it “remarkable.”
“It appears from the economic variables that indicate that the second wave of Covid-19 continued in the first quarter of the current financial year but did not have a significant negative impact on the economy. Considering overall perspective, this fiscal year’s GDP growth is forecasted at 7.25 per cent,” he said.
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“At the same time, the growth rate has been targeted to be 7.5 per cent for the next FY2022-2023, considering the lagged effects of the COVID-19 and the protracted crisis arising from the Russia-Ukraine conflict,” added the finance minister.
“Strong domestic and external demand will be the main driving force of our growth in the medium term,” he said. “Consumption and investment to increase the domestic demand and exports to increase the external demand will be one of our areas to focus on.”
“Our goal will be to build improved communications, necessary infrastructure and ensure power and energy security through increased public, private and foreign investment. The focus will also be on increasing the productivity of labor to increase export competitiveness,” he stressed.
“On the supply side, our goal is to accelerate the growth of the industry and service sector to achieve high GDP growth and employment. I am hopeful that this goal will be achieved through the speedy implementation of the establishment of economic zones,” Kamal added.
In the last 13 years, the average GDP growth has been 6.6 per cent, above 7 per cent in FY2016-2017, FY2017-2018, and FY2018-2019 and exceeded 8 per cent in FY2018-2019, he said in the speech.
The World Bank has projected that Bangladesh's GDP would grow by 6.7 per cent in FY23, while the ADB says it would be 7.1 per cent.
