GDP growth estimated at 6.75%

Finance Minister AH Mahmood Ali on Thursday said it is expected that pursuing all the “prudent policy measures” will help achieve GDP growth of 6.75 per cent in the next fiscal year and 7.25 per cent in the medium term.

He also said they are expecting that the inflation rate will come down to 6.5 per cent in the next fiscal year as an outcome of the policy strategies that they have adopted.

The finance minister said this while placing the national budget at Jatiya Sangsad for the fiscal 2024-2025.

This is the first national budget of Prime Minister Sheikh Hasina’s government which took office for the third consecutive term after winning early this year’s general election.

In his maiden budget Mahmood said the GDP growth is maintaining its momentum because of the implementation of prudent and appropriate policy measures.

The average growth rate between FY 2009-10 to 2022-23 was 6.71 per cent, one of the highest among all countries in the world, he said.

The country achieved a record GDP growth rate of 7.88 per cent in FY 2018-19 just a year before Covid-19 pandemic.

“Despite all adversities caused by Russia-Ukraine war and other global unrests, Bangladesh managed to achieve 7.10 per cent, 5.78 per cent and 5.82 per cent (provisional) growth in 2021-22, 2022-23 and 2023-24 respectively which is a testament to the inherent strength of our economy,” said the minister.

To maintain this growth in future, he said, all reasonable supports will be continued to encourage agricultural and industrial production.

Side by side, Ali said, proper implementation of important infrastructural projects and adoption of appropriate action plans aimed at increasing export earnings and remittances will be helpful for achieving the desired GDP growth.

The minister said demand for loans and the interest rate will be determined based on the supply of credit and the relationship between bankers and customers.

To control inflation, he said, various steps are being taken to make the monetary policy a successful one.

At the same time, Mahmood said, supportive policies are being implemented in the fiscal sector as well. “Government support like Family Card and OMS Programmes are being strengthened to protect the common people from adversities arising from high inflation.”