Bangladesh economy grows 3.97% in FY25, lowest since pandemic-hit FY20
Bangladesh's gross domestic product (GDP) growth in fiscal 2024-25 (FY25) was 3.97 per cent, the lowest since the pandemic-hit FY20, provisional data from the Bangladesh Bureau of Statistics (BBS) revealed.
The FY25 GDP size was estimated at Tk 55.527 trillion (~$462 billion).
Bangladesh's GDP growth in FY25 was 3.97 per cent, the lowest since the pandemic-hit FY20, provisional official data revealed. The GDP size was estimated at $462 billion. The lower GDP growth aligns with earlier projections made by the IMF (3.76 per cent), the ADB (3.9 per cent) and the World Bank (3.3 per cent) for FY25. They cited persistent economic challenges as reasons for lower projections.
The economy has faced a significant slowdown in this fiscal, with agriculture, industry and services all recording slower growths of 1.79 per cent (3.30 per cent in FY24), 4.34 per cent (3.51 per cent in FY24) and 4.51 per cent respectively.
The government's initial FY25 GDP growth target was 6.75 per cent, which was revised later to 5.25 per cent.
The lower GDP growth aligns with earlier projections made by the International Monetary Fund (3.76 per cent), the Asian Development Bank (3.9 per cent) and the World Bank (3.3 per cent) for FY25. They cited persistent economic challenges as reasons for lower projections.
However, per capita income rose to $2,820 in this fiscal from $2,738 in FY24.
Meanwhile, the investment-to-GDP ratio in FY25 was 29.39 per cent, down from 30.7 per cent in the last fiscal.
Economists and policymakers cite several factors, including stubbornly high inflation and a large share of default loans with banks, contributing to this situation, according to a domestic media outlet.
Moreover, a general climate of uncertainty, coupled with tighter monetary and fiscal policies, has dampened investment sentiment, which is evident in the slower growth of private sector credit.
Disruptions in supply chains and import restrictions have weakened industrial activities and contributed to price pressures as well.
The lower GDP growth is expected to further erode real incomes and suppress consumption, particularly among low-income groups, potentially pushing more people into extreme poverty. It translates into fewer employment opportunities as well.
Fibre2Fashion News Desk (DS)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
2 hours ago
- New Indian Express
India's poverty rate plummeted from 27.1% to 5.3% in 11 years at revised $3-a-day line
NEW DELHI: India has recorded a dramatic decline in poverty, with the proportion of people living below the World Bank's revised international poverty line of $3.00 per day (2021 Purchasing Power Parity, PPP) dropping from 27.1% in 2011 to just 5.3% in 2022. The updated poverty threshold, up from the earlier $2.15 line based on 2017 PPP, aims to better reflect today's global prices and cost-of-living standards. This revision offers a clearer, more realistic view of deprivation and development across countries. For India, the new metric underscores decades of progress in fighting poverty, particularly since the early 2000s. Back in 1977, nearly 78% of India's population lived below the $3-a-day mark. By 1993, the figure had dropped to around 68%, and to about 65% in 2004. However, the most rapid decline occurred in the last two decades. Between 2004 and 2022, the poverty rate fell by nearly 60 percentage points—a trend that accelerated especially after 2011.
Indian Express
9 hours ago
- Indian Express
At World Bank's raised poverty line of $3 a day, extreme poverty rate falls to 5.3% in 2022-23 from 27.1% in 2011-12
With the World Bank raising its threshold poverty line to $3 a day (daily consumption of less than $3) from the earlier $2.15 a day, the extreme poverty rate for India declines sharply to 5.3 per cent in 2022-23 from 27.1 per cent in 2011-12. In absolute terms, people living in extreme poverty fell from 344.47 million to just 75.24 million, latest data from the World Bank shows. At $2.15 daily consumption — the earlier poverty line based on 2017 prices— the share of Indians living in extreme poverty is 2.3 per cent, which is significantly lower than 16.2 per cent in 2011-12, according to the World Bank's estimates. The number of people living below the $2.15-per-day poverty line is recorded at 33.66 million in 2022, down from 205.93 million in 2011. Despite the World Bank revising its extreme poverty line to adjust for global inflation in 2021 prices, India seems to have fared well, with the poverty numbers holding good. At $3 a day threshold, India's extreme poverty rate for 2022-23 rises from 2.3 per cent (at a poverty line of $2.15 a day) to 5.3 per cent, the World Bank has estimates. Adjusting the earlier $2.15-per-day line for domestic inflation from 2017 to 2021, according to sources, brings the threshold poverty line to roughly $2.60—still lower in real terms than the new $3 a day benchmark. The share of Indians living below the revised lower-middle-income category (LMIC) poverty line of $4.20 per day (from $3.65 in 2017 prices) also fell from 57.7 per cent in 2011-12 to 23.9 per cent in 2022-23. In absolute numbers, people living under the revised LMIC poverty line dips from 732.48 million to 342.32 million in a period of 11 years. The World Bank estimates India's population at 1438.07 million in 2023, using its World Development Indicators database and the official Household Consumption Expenditure Survey. Based on the earlier LMIC line of $3.65/ day, India's poverty rate falls from 61.8 per cent to 28.1 per cent, with around 401 million Indians living below the $3.65/day line in 2022. Using the revised LMIC poverty line of $4.20 per day in 2021 prices, India's poverty rate drops to 23.9 per cent from 28.1 per cent in 2022-23. This may seem counter-intuitive, but sources said this is because the new threshold is about 5 per cent lower for India than the inflation-adjusted equivalent of the earlier $3.65 benchmark. When adjusted for domestic inflation between 2017 and 2021, the previous $3.65 line would be roughly $4.40 in 2021 prices, making the revised $4.20 line effectively a lower bar for India. Poverty rates for 2023-24 will be released in October under its Poverty and Inequality Platform (PIP). Sources in the government said these numbers have not been arrived at internally too. Under the $3.65-per-day LMIC line (in 2017 prices), rural poverty fell from 69 per cent in 2011-12 to 32.5 per cent in 2022-23, while urban poverty dropped from 43.5 per cent to 17.2 per cent. The gap by education level was even starker—35.1 per cent of Indians over 16 without any schooling lived below the poverty line in 2022-23, compared to just 14.9 per cent among those with a post-secondary education. According to the World Bank's multidimensional poverty index (MPI), non-monetary poverty in India declined from 53.8 percent in 2005-06 to 15.5 per cent in 2022-23. The index comprises six indicators, namely consumption or income, educational attainment, educational enrolment, drinking water, sanitation, and electricity. The NITI Aayog has estimated that India's population living in multidimensional poverty fell to 11.28 per cent in 2022-23 from 29.17 per cent in 2013-14. Data in the Household Consumption Expenditure Survey (HCES) 2023-24 also indicates a rise in monthly consumption in India. In 2011-12 prices, rural average monthly consumption spending per person increased to Rs 2,079 in 2023-24 from Rs 1,430 in 2011-12, a rise of 45.4 per cent. Urban average monthly consumption expenditure increased by 38 per cent to Rs 3,632 per person from Rs 2,630. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Fibre2Fashion
a day ago
- Fibre2Fashion
Many tax measures may disproportionately burden Bangladesh bizs: FICCI
While praising the Bangladesh government for its intentions regarding reforms and fiscal consolidation in the proposed budget for fiscal 2025-26 (FY26), the Foreign Investors' Chamber of Commerce and Industry (FICCI) recently expressed concern over the implementation of several tax measures, fearing these may disproportionately burden individuals and businesses. The revised tax slabs could increase tax burden by 50-60 per cent on salaried individuals having monthly incomes between Tk 70,000 and Tk 100,000 and 20-30 per cent for incomes between Tk 120,000 and Tk 175,000, FICCI president Zaved Akhtar told a post-budget press briefing. It said the rise in minimum tax from 0.6 per cent to 1 per cent for companies and from 0.25 per cent to 1 per cent for individuals would be a threat to small and medium enterprises (SMEs) and loss-making firms, as well as to inflation-hit citizens. The Foreign Investors' Chamber of Commerce and Industry in Bangladesh fears several tax measures proposed in the budget may disproportionately burden individuals and businesses. It said the rise in minimum tax from 0.6 per cent to 1 per cent for companies would be a threat to SMEs and loss-making firms. The VAT hike on online sales from 5 per cent to 15 per cent would hamper the e-commerce sector. The imposition of a 27.5-per cent corporate tax on listed companies with less than 10-per cent public shareholding and the withdrawal of reduced tax rates for cashless companies are 'counterproductive' to capital market development, the trade chamber was cited as saying by domestic media reports. The sharp hike in value-added tax (VAT) on online sales from 5 per cent to 15 per cent would hamper the e-commerce sector, FICCI pointed out. Fibre2Fashion News Desk (DS)
