Bangladesh Economy Achieves Blistering Growth in FY21

The covid-19 pandemic was raging across the world in FY21, however, despite such hurdles Bangladesh posted high growth in FY21. According to govt. numbers growth last fiscal year was 6.94%, which is way higher than the initial projection. This growth eclipses projected growth by 1.51%.

The primary contributor to this growth is the rebound of Bangladesh’s industrial sector, particularly Bangladesh Bureau of Statistics (BBS) credited cottage, small, medium and large industries. The preliminary estimate was 5.43% GDP. However, the final growth figure is 1.51 percentage points higher than its preliminary estimation.

The GDP growth edged down to three-decade-low 3.45% in FY20 due to the Covid fallout, but this v-shaped recovery showcases the resilience of Bangladesh's economy. Meanwhile, Bangladesh's per capita income has increased to $2,591 that previously was estimated to be $2,554. Additionally, the GDP size for last FY year is $416.3 billion.   

Comparatively, IMF projected 4.6% GDP last year and Asian Development Bank projected GDP to be between 5% and 5.5%. The major contributor to this growth is the rebound of the Industrial sector. According to BBS, the Industrial sector achieved 10.29% growth in FY21, compared to FY20’s 3.61% growth. Service sector growth in FY21 was 5.86%.