The country’s economic growth finally increased 0.21 percentage points to 7.86 percent in the last fiscal year predominantly driven by more public investment.
Bangladesh Bureau of Statistics (BBS) had provisionally estimated GDP growth at 7.65 percent for FY18 where it had taken into account nine months’ economic activities.A year earlier the growth rate was 7.28 percent. The final growth rate was 0.46 percentage points higher than the official projection of 7.4 percent growth in the year.
Per capita gross national income (GNI) was estimated at $1,751 while the country’s GDP size stood at $274.11 billion.
Planning Minister AHM Mustafa Kamal revealed final GDP estimate of BBS at a press conference on Tuesday following Ecnec meeting.
“It is a historical day for us. From now on, such historical day will come regularly when we’ll break our own records,” commented an upbeat Kamal while revealing the latest GDP growth figures.
He attributed the higher growth to increased public investment, even though private investment somewhat remained below par.
Kamal informed that public investment rose to 7.97 percent of GDP from 7.41 percent in FY17 while private investment saw a modest increase from 23.10 percent to 22.83 percent.The country’s investment in GDP ratio also improved as well to 31.23 percent which was 30.51 percent one year ago.
Poverty rate, on the other hand, was estimated to fall to 23.1 percent in 2017 and 21.8 percent in 2018, whereas extreme poverty rate fell to 12.1 percent in 2017 and 11.3 percent in 2018.
BBS said it made the estimate for 2017 and 2018 based on Household Income and Expediture Survey (HIES) 2010 and 2016 poverty fall rates as well as GDP growth rate.
In HIES 2010 and 2016, general poverty rate was 31.5 percent and 24.3 percent respectively and extreme poverty rate was 17.6 percent and 12.9 percent respectively.
“Per-capita income has increased as we have been able to develop the country. We have become successful in cutting poverty as well,” the planning minister said.
BBS figures show that industry sector’s contribution to GDP modestly increased last year but agriculture and service sectors’ contributions fell.
Agriculture sector’s share in GDP was recorded at 13.82 percent and those of industry and service sectors at 30.17 percent and 56 percent respectively.
One year ago, these three key sectors’ share in GDP was 14.17 percent for agriculture sector, 29.32 percent for industry and 56.50 percent for services sector.
However, agriculture sector’s growth strongly rebounded last fiscal year to 4.19 percent from a sluggish growth of 2.97 percent and 2.79 percent in the previous two years.
Industry sector grew by a much higher rate of 12.06 percent, which was 10.22 percent a year earlier, while service sector growth slipped to 6.39 percent from 6.69 percent.
National savings to GDP ratio fell to 27.42 percent which was 29.64 percent one year ago and in FY 16 it was 30.77 percent.
According to latest BBS data, the country’s total population stood at 163.65 million which was 161.75 million one year ago.