Rise in import-export, revenue, remittance drove FY21 GDP growth: Finance minister
The Ministry of Finance had projected a 7% growth in the budget for the current financial year
Bangladesh has been able to reach close to last fiscal year's economic growth target owing to a significant increase in import-export, revenue collection, remittance inflows and other economic indicators, said Finance Minister AHM Mustafa Kamal on Thursday.
"Some may say that the gross domestic product (GDP) assessment has not been calculated properly, and the government has shown too much. I would like to tell them that we never compromised in our evaluations," he said.
The planning minister has already explained why and how the GDP growth increased, Kamal told reporters after a meeting of the Cabinet Committee on Public Procurement on Thursday.
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In the fiscal 2020-21, GDP grew 6.94% against the target of 8.2%.
The finance minister said the Bangladesh Bureau of Statistics (BBS) assesses GDP in accordance with the System of National Accounts 2008 of the International Monetary Fund. The whole world follows this method.
"Whichever way you calculate, you will find the same data on GDP and per capita income. This has been possible due to our expansion of monetary policy," he added.
Kamal said while the global economy was heading for negative growth due to the coronavirus pandemic, Bangladesh's economy was still on a positive trend.
"Our economy has never been down. Our inflation did not increase, the interbank exchange rate was also stable. Revenue collection is the most difficult task, but there has also been a 15% growth," he added.
"In the last financial year, exports rose 30% and imports also increased. Remittances were also on the upward trajectory. Although remittances are not included in GDP, they contributed to the increase in per capita income," he said.
Citing data from the BBS, the finance minister said at the end of the last financial year, Bangladesh's per capita income stood at $2,591.
The Cabinet Committee on Economic Affairs, chaired by the finance minister, yesterday approved in principle the proposal of the Ministry of Civil Aviation and Tourism to purchase three sets of Explosive Detection Systems for scanning at Hazrat Shahjalal International Airport in Dhaka.
In addition, to establish a five-star hotel on 26 acres of land of the Sylhet Tourism Motel owned by the Bangladesh Tourism Corporation, a project titled, "Establishment of International Standard Tourism Complex at the existing motel compound at Sylhet" was approved at the meeting.
It also approved a Tk1,206 crore road widening and construction of a two-story road project from Panchabati in Narayanganj to Muktarpur in Munshiganj.
The committee approved the purchase of four cutter suction dredgers and ancillary vessels and accessories from Ananda Shipyard and Slipways Limited and Karnafuli Shipbuilders Limited at a cost of about Tk426 crore.
