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GDP growth won’t be less than 6.3%: Muhith

  • Published at 05:51 am May 30th, 2013
GDP growth won’t be less than 6.3%: Muhith

Reiterating that the budget for the next fiscal(2013-14) would be ambitious, finance minister AMA Muhith on Thursday said the GDP growth in the outgoing fiscal (2012-13) would not be less than 6.3% and could even reach 6.8%.

“Growth rate in the current fiscal won’t be less than 6.3%; it can be as high as 6.7% to 6.8%,” he said while speaking at a dividend handover ceremony of the UAE-Bangladesh Investment Company Limited held at the Ministry of Finance.

Mentioning the public sector performance as excellent, Muhith said the flow of foreign aid is also good in the current year. “As a result, the public sector investment has gone up by 1.65% this year.”

He said that with this increase, the deficit in the private sector has been covered and in some cases surpassed expectations “If there is higher investment, then the growth rates go upward.”

Regarding the confusion about the ADP size for the next fiscal year, the finance minister said the next ADP includes self-financed programmes of the autonomous institutions. So, excluding the allocations of the autonomous bodies, the real ADP size stood at around Tk660,000m.

Referring to the downward GDP growth projection of 6.03% in the outgoing fiscal year from the original target of 7.2% made recently by the Bureau of Statistics (BBS), he differed with the projection saying that the yield in potatoes, boro rice and maize would be higher in the outgoing year than the previous year.

Muhith said potato production would be about 10% more than the last year and is expected to total 8.8m metric tonnes. Boro yield is also expected to be higher than last year while the production of maize would be substantially higher to around 2.2 metric tonnes.

The government in the national budget set to achieve 7.2% GDP growth in the current fiscal (2012-13) in a bid to become a middle-income country by 2021.

Earlier, the World Bank in its latest development outlook has downsized Bangladeshs GDP growth prospect to 5.8%, slashing 1.4 percentage points from the government’s 7.2% target in the current fiscal (2012-13).

Another multilateral donor --Asian Development Bank -- also forecast last month economic growth as 5.7% in the current fiscal, down 1.50 percentage points from the government estimation of 7.2%.

Bangladesh’s GDP growth started to fall since 2011-12 after an impressive performance in 2010-11 when the country’s economy expanded at a rate of 6.71%.