FY24 economic growth hits 4-yr low at 4.22pc

Staff Reporter :

Bangladesh’s economy grew by just 4.22 per cent in the fiscal year 2023-24, marking the lowest growth rate in the last four years.

The slowdown was attributed to contractionary monetary and fiscal policies implemented to address dwindling foreign exchange reserves, high inflation, and disruptions in energy supply.

The growth fell 1.6 percentage points short of the provisional estimate by the Bangladesh Bureau of Statistics (BBS).

The final Gross Domestic Product (GDP) figures for FY24 were revised down to $450 billion, compared to the initial estimate of $459 billion, according to Shafiqul Alam, press secretary to Chief Adviser Muhammad Yunus.

In comparison, the country’s GDP grew by 3.45 per cent in FY20, when the COVID-19 pandemic significantly impacted economic activities. The economy rebounded in the following year but faced renewed challenges in FY23, continuing into FY24.

Due to the revision, per capita income for FY24 stood at $2,738, down from the preliminary estimate of $2,784. The slowdown was also caused by the erosion of people’s purchasing power amid persistent inflation, declines in exports and imports, and pressures on the country’s financial stability.

According to BBS data, between April and June (Q4) of FY24, the GDP grew by only 3.91 per cent. In Q3 FY24, GDP growth was recorded at 5.42 per cent, down from the previously announced 6.12 per cent under the previous Awami League government. GDP growth in Q1 and Q2 stood at 6.04 per cent and 4.78 per cent, respectively.

The International Monetary Fund (IMF) had projected Bangladesh’s GDP growth at 5.4 per cent for FY24, while the World Bank forecasted a 5.2 per cent growth.

However, the World Bank revised its outlook for FY25, lowering its forecast to 4.1 per cent, citing subdued investment and industrial activity amid heightened political uncertainty.