GDP Growth Target Set at 7.2%

The government has set the growth rate for FY2021-2022 at 7.2 percent in the proposed budget for 2021-22, in line with the long-term plan and taking into account the post-Covid recovery situation.

Finance Minister AHM Mustafa Kamal remarked while presenting the budget, "Due to the impact of the Covid-pandemic, Bangladesh's sustained high GDP growth over the last decade has been momentarily suspended. Despite achieving a record 8.15 percent growth in FY2018-2019, due to the pandemic, growth has decreased to 5.2 percent in FY2019-2020."

"The GDP growth rate for FY2020-2021 was originally projected to be 8.20 percent, based on the premise that the economy would recover from the pandemic's effects. However, due to the continued impact of the pandemic and the surge of its second wave, as well as the resulting lockdowns in various countries around the world, including Bangladesh, economic activities slowed and the expected momentum in import and export activities did not materialize," said the minister.

He further said, "However, in light of the better-than-expected rise in remittances and the government's adoption of substantial stimulus packages to promote economic recovery, the GDP growth rate has been revised to 6.1 percent for the current fiscal year. In addition, the growth rate for FY2021-2022 has been set at 7.2 percent, which is in line with the government's long-term plan and takes into account the post-Covid recovery situation. During this time, the inflation rate is expected to reach 5.3 percent."