• Sunday, Feb 28, 2021
  • Last Update : 12:13 pm

Economy rebounding from pandemic shocks

  • Published at 04:04 pm January 20th, 2021
AHM Mustafa Kamal
File photo of Finance Minister AHM Mustafa Kamal Courtesy

The annual average inflation rate reached 5.69% in September 2020, the finance minister said

Finance Minister AHM Mustafa Kamal has said the country’s economy has been rebounding from the Covid-19 shocks due to the time-befitting steps of the government alongside implementation of the stimulus packages.

“In the first half (July-December) of the current fiscal year (FY21), the major macroeconomic indicators like inward remittance, foreign currency reserves, money supply and inflation are in a very satisfactory position,” he said while expressing his firm resolve that Bangladesh would soon step into a developing country status from the list of LDCs, reports BSS.

The finance minister said this while presenting a report on budget implementation progress, trend of income, expenditure and economic analysis of the first half (July-December) period of the current fiscal at the Parliament on Wednesday.

“The Taka-Dollar exchange rate has long been remained stable while the current account and balance of payments account are also in positive trajectory,” he added.

Highlighting some of the major macroeconomic achievements of the government in the first half, Kamal said the NBR attained a revenue collection growth of 4.11%, overall public expenditure had reduced by 7.57%, and the rate of ADP implementation has reached 8.2% out of its overall allocation.

Besides, he said the inward remittance flow witnessed a growth of 48.54%, thanks to the incentive on remittance at 2% rate alongside simplifying the remittance sending process. 

“I express my optimism that such upward trend in inward remittance will continue in the future too,” he added.

Apart from this, the finance minister highlighted that the export earnings witnessed a growth of 2.54% side by side the foreign currency reserves reached a record height of $43 billion, which was $39.31 billion in September 30, 2020.

The annual average inflation rate reached 5.69% in September 2020.

Kamal said the GDP rate of Bangladesh has increased gradually over the last one decade until fiscal year (2018-2019) when the GDP growth rate reached a record 8.15%, which was also the highest in Asia. 

But, following the Covid-19 pandemic, the high growth trend became a bit sloth, but still it posted the highest growth in Asia with 5.24% whereas the major Asian economies witnessed negative growth except China and Vietnam.

He said the per capita income of the country has increased to $2,064, while the government has been implementing various short, mid-term and long-term plans giving priority on attaining high growth, maintaining the macroeconomic stability.

The statement showed that the overall public expenditure in the FY20 stood at Tk4,15,548 crore, which is 6.03% higher than the previous fiscal year (FY19).

In the first half of the current fiscal year (FY21), the overall public expenditure has reduced by 7.57%, ADP expenditure was reduced by 26.26%, while other expenditure has reduced by 1.28%.

The finance minister said after successful completion of the 7th Five Year Plan, the government has also started implementation of the 8th Five Year Plan (2021-2025), 2nd Perspective Plan (2021-2041) and Delta Plan 2100.

“Our desired goal is to turn Bangladesh into a happy and prosperous developed nation by 2041,” he added.

He mentioned that to offset the shock from Covid-19, the government has so far rolled out some 23 stimulus packages involving a total sum of Tk1,24,053 crore, which is also 4.4% of the country’s GDP. 

“All will have to acknowledge it that this is a rare and courageous step in the history of Bangladesh,” the minister said.

He furthered that Bangladesh would soon graduate from the LDC status into a developing country under the able leadership from Prime Minister Sheikh Hasina and also in the directed path of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.

He also dedicated such an achievement (once Bangladesh is graduated from the LDC status) to the martyrs of country’s War of Liberation, including Father of the Nation Bangabandhu Sheikh Mujibur Rahman, since the country is also celebrating the centenary birth celebration of Bangabandhu and the Golden Jubilee of country’s independence.

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