#Title

GDP size

Economy posts blistering growth in FY21
Govt reveals final figure of 6.94pc
$ 416 billion (Current Price)
Per capita income - $ 2,591
STAR BUSINESS REPORT
Despite the second wave of the coronavirus pandemic, Bangladesh’s economy pulled off a stunning 6.94 per cent growth in the last fiscal year, way higher than the initial estimate.
The final figure is up 1.51 percentage points compared to the provisional estimate, thanks to the rebound of the industrial sector, especially the cottage, small, medium and large industries, according to the Bangladesh Bureau of Statistics (BBS).
The provisional estimate was 5.43 per cent.
Planning Minister MA Mannan yesterday disclosed the final figures of the gross domestic product (GDP) after the meeting of the Executive Committee of the National Economic Council.
Calling the growth “a miracle” amid the pandemic, the minister said, “It’s a miracle that our GDP growth surged to nearly 7 per cent while many other countries took a hit.”
He said that the prime minister was very happy because of the achievement and she has dedicated this to the countrymen.
The economic growth figure is much higher than the projections made by the international organisations.
The World Bank (WB) had projected that Bangladesh would have a GDP growth of 5 per cent by the end of FY2021. The International Monetary Fund (IMF) said it would be 4.6 per cent and the Asian Development Bank (ADB) put the figure at 5.5 per cent.
Mannan said that the WB, the ADB and the IMF naturally do their projection. “But, this year, the World Bank has corrected its own projections. They have finally raised it. Our final growth is almost equal to the World Banks’s projection.”
“I repeatedly say: it is our product that has been achieved by our people. We have full confidence in it. It’s open to analysis,” he said.
State Minister for Planning Prof Shamsul Alam said, “We count this GDP system according to the United Nations’ procedures and our national technical expert committee has overseen it.”
“The IMF and the World Bank don’t collect the data in the way we collect from the local level. They do it depending on some assumptions and international trade flows that are subjective. Lastly, they have used our data and updated them.”
Prof Alam said the growth in national GDP was an indication that the economy had bolstered on the back of export and remittance.
“Additionally, revenue collection improved last fiscal year, indicating that businesses recovered, allowing them to pay more value-added tax and tax.”
Contacted, Prof Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, said the economic growth has been better as Bangladesh has been able to take the opportunity amid the pandemic instead of going into lockdown.
“As a result, the economy was functional with the help of some stimulus packages. There was domestic demand and external factors were also in favour of Bangladesh.”
According to the BBS, the industrial sectors boomed, the service sector slightly declined while agriculture fared well.
In FY19-20, the industrial sector grew 3.61 per cent. It rose to 10.29 per cent in FY21.