GDP growth slows to 6.07% in Q1 FY24

The gross domestic product (GDP) grew at estimated 6.07% in the first quarter (July-September) of the current fiscal year, while real growth in the last fiscal year stood at 5.78% in the final count, lower than official projection, the Bangladesh Bureau of Statistics said today.

This is for the first time the official statistical agency released quarterly GDP growth data of a current fiscal year, although it started quarterly adjustment of old GDP numbers of previous years.

The first quarter growth of the current fiscal FY24 was slower than 6.24% growth posted in the last quarter of FY23 and much lower year-on-year. The GDP growth of Q1 of the past fiscal year (FY23) was staggering 8.76%, which fell to below 6% for the whole fiscal year due to poor performance in the third quarter.

The release of quarterly GDP data followed the government's decision taken in November 2020 and later advised by the International Monetary Fund.

The BBS said the release of quarterly growth data is intended to assess the movement of the country's economy and help policymakers take decisions on time.

Agriculture sector posted a drastic fall in growth to 0.84% in Q1 of FY24, which was 3.47% in the previous quarter. The growth was 2.07% in Q1 of the last year.

The industry sector also recorded a fall in quarterly growth, to 9.67% in Q1 of the current fiscal year from the last quarter's 11.41%, while it was 7.17% a year before.

However, the service sector posted a positive trend, with Q1 growth recorded at 3.96%, up from 2.87% in the last quarter of the previous year. But the growth was drastically lower from the Q1 of FY23, when the service sector grew 12.87%.

Earlier in January this year, the World Bank forecast a slow economic growth for Bangladesh as inflation is likely to remain elevated, while foreign exchange reserves are expected to stay low.

In its latest edition of Global Economic Prospects, the global lender warns continued import restrictions and rising input costs could impede private investment, while slower export growth to Europe might impact overall economic prospects for Bangladesh.

"In Bangladesh, growth is forecast to slow to 5.6% in FY24. Inflation is likely to remain elevated, weighing on private consumption," said the World Bank's flagship report.