Economy
Bangladesh Economy Records 6.12% Growth in Q3
Bangladesh’s economy grew by 6.12% in the third quarter (January-March) of the recently concluded fiscal year, showing a significant recovery from the second quarter’s 3.78% growth. This recovery was driven by substantial growth across key sectors – agriculture, industry, and services, according to the latest data from the Bangladesh Bureau of Statistics (BBS).
Despite the robust third-quarter performance, the economy needs to grow by over 7% in the final quarter to meet the revised annual growth target of 5.8% for FY2023-24. This target comes after the GDP growth fell to 3.78% in the second quarter from 6.01% in the first quarter (July-October) of FY24. The third-quarter growth of 6.12% was a significant improvement compared to the 2.30% growth seen in the same period of the previous fiscal year.
Regarding the $10 billion overstatement in export figures and its impact on growth calculations, economist Prof Mustafizur Rahman told The Business Standard, “The size of GDP will change due to the discrepancy in export earnings, but it may not impact growth. This discrepancy pertains to the previous fiscal year, so a portion of exports will be excluded from fiscal 2022-23.”
Prof Rahman, a distinguished fellow of the Centre for Policy Dialogue, noted that the average growth for the first three-quarters of FY24 stands at around 5.3%. To meet the government’s target of 5.82% for FY24, the fourth quarter will need a significant boost in growth.
BBS officials stated they have not received official information from any government agency regarding the export figure discrepancies. As a result, they are using the same data as before for GDP calculation. Currently, BBS is receiving different export figures on different days and plans to revise GDP figures once they receive official information from the Export Promotion Bureau (EPB).
Planning Minister Abdus Salam acknowledged the discrepancy in export data from the EPB on Tuesday (9 July), stating it would lead to a decrease in per capita income and GDP size.
The GDP amounted to Tk13.48 billion in Q3, up from Tk11.44 billion in the same quarter last year. The agriculture sector’s contribution to GDP saw a substantial increase from 1.88% in Q3 of FY23 to 5.46% in the last fiscal year. The industry’s contribution also rose by 2.05 percentage points to 7.03%, while the service sector’s contribution grew from 1.47% to 4.97%.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
