Bangladesh heading for fastest economic growth in FY17: Govt

Bangladesh’s economic growth will hit 7.24 percent, the fastest in its history, surpassing the target set in the budget, according to an estimate by the government.

But the World Bank estimated economic growth at 6.8 percent.

The higher estimates by the Bangladesh Bureau of Statistics or BBS are based on data from the first ten months of 2016-17 (July-April).

The BBS estimated that Bangladesh’s per capita income will rise to $1,602 by the end of the current fiscal year, up from $1,465 in the previous year.

The numbers were revealed by Planning Minister AHM Mustafa Kamal at the National Economic Council (NEC) meeting led by Prime Minister Sheikh Hasina on Sunday.

“This is the result of our combined efforts,” Hasina said. “These achievements have been possible because of the continuity of governance.”

However, according to the World Bank report ‘Bangladesh Development Update’, the fall in export growth and continued problems with remittances will lead to a lower economic growth rate than the previous year.

“Overall I would say the Bangladesh economy has maintained its continuity,” said Zahid Hussain, lead economist of the World Bank’s Dhaka office. “Exports and remittances are unfavourable, but stability remains.”

The World Bank report states that export growth between July to April of the current fiscal year was 4 percent, compared to 9 percent a year ago. It also says remittances over the first ten months of the current fiscal year fell 16 percent, compared to the 2.5 percent fall in FY 2016.

The final BBS calculation for the previous fiscal year found the growth rate to be 7.11 percent and the per capita income at $1,465.

After being stuck in the 6 percent range for nearly a decade, the Bangladesh economy finally surpassed 7 percent economic growth in 2015-16.

The budget formed last June set a growth target of 7.2 percent for 2016-17.