GDP Growth Hits Four-Year Low, Per Capita Income Declines

Economic Desk

Bangladesh’s gross domestic product (GDP) grew by 4.22% in the fiscal year 2023-24, marking the lowest growth rate in four years.

The Bangladesh Bureau of Statistics (BBS) reported this final growth figure, which is 1.6 percentage points lower than the provisional estimate of 5.82%. The government initially targeted a 7.50% growth rate for the fiscal year, later revising it to 6.5%.

The country last achieved its highest GDP growth rate of 8.15% in the fiscal year 2018-19. However, the COVID-19 pandemic caused a sharp decline, with growth falling to 3.45% in 2019-20. The 2023-24 fiscal year has once again seen growth stagnation.

Bangladesh’s total GDP at the end of 2023-24 stood at BDT 50,027 billion or USD 450 billion, lower than the provisional estimate of USD 459 billion released in August 2023.

Lower GDP growth also impacted per capita income, which dropped to USD 2,738 from the earlier estimate of USD 2,784.

Shafiqul Alam, the Chief Adviser’s Press Secretary, highlighted a positive outlook during a press conference at the Foreign Service Academy on Sunday. He presented data on export earnings, inflation, and foreign exchange reserves, indicating a turnaround in economic performance.

“Bangladesh’s economy has significantly recovered over the past five months,” he said. “Exports have increased by 10%, imports have also grown, and new job opportunities are emerging. We have halted unnecessary money printing and canceled non-essential development projects to cut government expenses.”

The interim government convened a review meeting on its first five months of economic performance and future challenges. Participants included Chief Adviser Muhammad Yunus, Economic Adviser Salehuddin Ahmed, and Bangladesh Bank Governor Ahsan H. Mansur. The review highlighted progress in key economic indicators but acknowledged the challenges posed by lower growth and declining per capita income.