GDP growth target set at 7.2pc, inflation at 5.3pc

Staff Correspondent

4 June, 2021 12:00 AM printer

The government has fixed GDP growth rate at 7.2 percent and expected inflation rate 5.3 percent in the proposed for FY2021-2022 as account of long-term plan considering the post-Covid recovery.

"Bangladesh's sustained achievement of high GDP growth in the last decade has been halted temporarily due to the impacts of the Covid-19 pandemic,” Finance Minister AHM Mustafa Kamal said while placing the proposed national budget.

“Even though we achieved a record 8.15 percent growth in FY2018-2019, it has slowed down to 5.2 percent in FY2019-2020 due to the pandemic," he mentioned.

The minister is expected that the inflation rate will be 5.3 per cent during the period of FY2021-22.

"The GDP growth rate was originally estimated to be 8.20 percent for FY2020-2021 on the assumptions that the economy would recover from the impact of the pandemic.”

But the economic activities slowed down and the expected momentum in import and export activities did not take place due to the continuation of the pandemic.

The surge of its second wave resulted in lockdowns in different countries, including Bangladesh, the finance minister added.

Mustafa Kamal said that considering the better-than-expected growth in remittances and the implementation of the large stimulus packages by the government to facilitate economic recovery, the GDP growth rate has been revised at 6.1 percent for the current fiscal year.

Alongside, the growth rate for FY2021-2022 has been fixed at 7.2 percent remaining consistent with the government's long-term plan and taking the post-Covid recovery situation into account.