Economy marches towards record 7.65pc growth

The Bangladesh economy is charging towards record growth figure for the second consecutive year, driven by double-digit growth in manufacturing and construction sectors.  GDP growth in fiscal 2017-18 is likely to be 7.65 percent, up from 7.28 percent a year earlier, as per the estimate of the Bangladesh Bureau of Statistics.

This is the third consecutive year that the economic growth was above 7 percent after years of languishing in the neighbourhood of 6 percent. The rise in construction growth is attributable to progress in implementation of mega projects and increased growth in housing construction, stimulated, among others, by recovery in remittance, said Zahid Hussain, lead economist at the World Bank’s Dhaka office. The provisional estimates show that the manufacturing sector grew 13.18 percent this fiscal year and the construction sector 10.11 percent.

“The final figures may be higher,” said Planning Minister AHM Mustafa Kamal while unveiling the provisional estimates at a press conference held at the National Economic Council auditorium after the meeting of the Executive Committee of the National Economic Council.

The provisional figures are based on data from the past 6 to 9 months.

Various macroeconomic indicators are now showing positive trend, he said, citing export and remittance as examples. “Due to these causes, growth was good. Besides, there is no depression in world economy, which also helped,” the planning minister added. Kamal’s disclosure comes after Finance Minister AMA Muhith on Sunday said the economy is on track to log in better GDP growth figures than last year even though it is an election year.

The BBS data shows that the agriculture sector, whose contribution to the GDP is 14.10 percent, grew 3.06 percent in fiscal 2017-18, up from 2.97 percent last year. The services sector, whose contribution to the GDP is 52.85 percent, grew 6.33 percent this year, down from 6.69 percent registered a year earlier.