Bangladesh aims for 7.5% GDP growth, 6% inflation

The government plans to reach an ambitious 7.5 per cent gross domestic product (GDP) growth in FY2023-24 by braving the uncertainties of the global economy and various challenges.

In FY24, the government also aims to keep the average inflation rate at 6 per cent.

Finance Minister AHM Mustafa Kamal disclosed the targets in parliament on Thursday while presenting the proposed national budget of Tk 7,61,785 crore for FY24, starting from July 1.

"On the whole, we expect to return to a higher growth trajectory and achieve a 7.5 per cent GDP growth in the coming fiscal year, by way of investing in the productive sectors and stimulating productivity and domestic demand," he said in the budget speech.

“To achieve the growth target, we will gradually come out of the contractionary policy and invest in ongoing and new growth-inducing projects including the mega-projects. For this purpose, the budget of the next fiscal year has set a higher target of raising the public investment to 6.3 per cent of the GDP,” he added.

Kamal said, "At the same time, investment will continue to be facilitated in economic zones with an investment-friendly environment consisting of various facilities such as undisputed land, improved infrastructure, uninterrupted utilities, financial incentives and ease of doing business, etc.

“Development of logistics sector and reform of financial management will reduce time, cost and complexity in investment/business processing. As a result, private investment, which has decreased slightly in the current fiscal year, is expected to increase to 27.4 per cent of GDP in the next fiscal year.”

“Due to the decrease in the prices of fuel, food, and fertiliser in the global market, along with the adjustment of fuel prices in the domestic market and government initiatives to keep the food and supply systems normal, the inflation will remain much controlled in the next fiscal year and the annual average inflation is expected to stand at around 6.0 per cent,” the minister added.

The latest budget is 12.34 per cent bigger than the last one, which was originally proposed to be Tk 6,78,064 crore. This will be the last budget of the Awami League government's current five-year term.