Economic growth slows in Q2
Bangladesh’s GDP to grow 6.1% in FY24: ADB
Bangladesh's economic growth slowed to 3.78% year-on-year in the October-December quarter of the fiscal 2023-24, compared to 6.01% in the previous three months.
The gross domestic product grew by 7.08% and 9.30% in the second quarter of FY23 and FY22, respectively, according to the Bangladesh Bureau of Statistics (BBS) quarterly domestic production and growth rate update report.
Meanwhile, the Asian Development Bank (ADB) has forecasted economic growth for the South Asian nation at 6.1% in the current fiscal year ending in June 2024.
The government initially decided to publish a quarterly GDP report on 26 November 2020, in a move to provide a timely status of the country's economic health.
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As per the latest BBS report, the growth in the industry and services sector has slowed considerably. However, growth in agriculture has picked up.
The agriculture sector experienced a growth rate of 4.65% year-on-year in October-December, compared to 4.22% in the first quarter.
The growth in the industrial sector decreased from 9.63% to 3.24%, and the growth in the services sector decreased from 3.73% to 3.06%.
On a point-to-point basis at a fixed price value, the industrial sector grew 3.24% in the second quarter of FY24, compared to 10.00% during the same period in FY23 and 14.50% in FY22.
Besides, the services sector grew at 3.06% in the second quarter of FY24, compared to 6.62% and 7.25% in the same quarter of FY23 and FY22, respectively.
ADB projections
In its April 2024 Asian Development Outlook, published on 11 April, the Manila-based lender said the country's GDP may grow 6.6% in FY25.
"In Bangladesh, garment exports will push growth up to 6.1% in FY24 and 6.6% in FY2025," added the report.
The 6.1% GDP growth projected for FY24 is 0.3 percentage points more than the 5.8% growth by the end of FY23.
"Economic growth in Bangladesh moderated in the fiscal 2023 as monetary tightening in the advanced economies lowered external demand. Inflation rose significantly, and the current account deficit narrowed," said ADB in its outlook.
"Despite macroeconomic headwinds, GDP expansion is expected to accelerate gradually this year and next with resilient exports and the government committed to structural reform," it added.
The ADB said inflation will gradually moderate while the current account turns into small surpluses.
It stated that implementing reforms to bolster Bangladesh's competitiveness will be crucial for the country's seamless transition from its status as a least-developed country.
