Tuesday, 24 May, 2022

Govt to keep intact GDP growth projections: Kamal

Finance Minister AHM Mustafa Kamal said the government would keep intact the GDP growth projection of 7.2 percent in the current fiscal year (FY22) and also the probable 7.5 percent in the next 
fiscal year (FY23).

"We're keeping same our GDP growth projection, which is 7.2 percen for current fiscal year and 7.5 percent for the next fiscal year (FY23). If the trend goes downward, then we may have to revise it. Until then, the growth projection of 7.2 percent for current fiscal and 7.5 percent for the next fiscal will remain the same," he said.

The Finance Minister said this while responding to queries after chairing the 14th meeting of the Cabinet Committee on Government Purchase (CCGP) in this year held today virtually.

The lending agencies including the World Bank (WB), the Asian Development Bank (ADB) and the International Monetary Fund (IMF) in their latest global economic outlook have downsized the growth of the global economy.

The IMF has projected that the economy of Bangladesh will grow by 6.4 percent in the current fiscal year which will be thesecond highest after India in South Asia.

Earlier, the World Bank also downsized Bangladesh's GDP growth projection to 6.4 percent in the current fiscal year while the ADB had slightly scaled it up to 6.9 percent.

Answering to a question, Kamal said commodity prices have witnessed uptrend across the globe due to some disruptions mainly because of the Russia-Ukraine war while Bangladesh is also integrated with the global transaction system.

"In such case, if there is any disruption, then we'll have to share... But we're not doing anything in advance regarding projections," he added.

The Finance Minister also mentioned that as of today, there is no sign of ceasefire between Russia and Ukraine while the external vulnerability for the world right at this moment is the war.

Responding to another query, he said the government is yet to take any fresh decision regarding subsidy management while any further decision on inflation management would be disclosed in due time.

He also told a questioner that the budget deficit would remain within the fiscal target. 

Kamal said although Bangladesh is integrated with the global system, but, the country is still in a good shape by the grace of Almighty Allah.

"Hopefully, the war will come to an end ...We will move ahead with such hope and thus act on our projections. If there is any impact, then we'll have to act accordingly. But, hopefully, there will be no such problem for us," he added.

The Finance Minister also hoped that the upcoming Holy Eid ul Fitr would bring utmost happiness to the people of the country.