GDP growth drops to 7.1% in FY22, per capita income $2,793

The country's gross domestic product (GDP) growth rate declined to 7.1% in the fiscal 2021-22, from the provisional estimate of 7.25%, according to the Bangladesh Bureau of Statistics' final report for the last fiscal year.

The per capita income also decreased to $2,793, a 1.10% drop from the provisional figure of $2,824, due to the increase in total population and depreciation of the local currency against the US dollar.

The population was reported to be 171.3 million, higher than the provisional estimate of 170.79 million.

Despite the decline, the GDP growth rate was still impressive given the current economic challenges globally and domestically. Bangladesh's GDP grew at 6.94% in FY21 and 3.45% in FY20 and 7.88% in FY19.

In terms of sectoral growth, agriculture, and large industries performed better in the final figures than in the provisional data, while small and medium enterprises experienced a significant decrease to 4.84% from the provisional estimate of 11.71%.

The agriculture sector contributed 11.66% to the GDP, while the contribution of the industrial, and services sectors were 35.27% and 53.01%, respectively.

The final report also showed a Tk1.49 lakh crore decrease in overall consumption when compared to the provisional figure.

Dr Zahid Hussain, former lead economist of the World Bank's Dhaka office, attributes the decline in growth compared to the provisional estimate to a decrease in consumption due to high inflationary pressure. 

He said that even though the final GDP growth in FY22 was higher compared to the previous year, there are questions regarding the source of additional investment.

He also noted that export earnings increased in the last fiscal year, reflecting the double-digit growth in the manufacturing sector.