GDP growth target set at 7.3 per cent

The government targets a gross domestic product (GDP) growth rate of 7.3 per cent for the next fiscal year despite a slower pace of economic growth in the outgoing fiscal.

The growth target is up by 1.18 percentage points from the 6.12 per cent estimated for the outgoing FY 2012-13.

The Bangladesh Bureau of Statistics (BBS) has estimated the economic growth rate at 6.12 per cent in the current fiscal.

Bangladesh's GDP size is expected to rise to Tk 13.395 trillion in the FY 2015 from that of Tk 11.81 trillion in the outgoing fiscal. The GDP size in the previous FY 2012 was Tk 10.38 trillion.

Finance Minister AMA Muhith in his budget speech Thursday said: "We hope that in the next fiscal, investment, export and remittance flows will increase as it is expected that the global economy will experience accelerated growth."

"During this period, food and energy prices in the international market are likely to decline slightly. Besides, an investment-friendly monetary policy will be maintained ensuring uninterrupted credit flows to the productive sectors."

"Government initiatives for developing physical infrastructure in the power, energy and communication sectors will continue. Different initiatives will be undertaken for development of skills and human resources. Fiscal, monetary and stock market reforms will go on," Muhith said.

He said: "Foreign investment and assistance are expected to increase. Credit and input support will continue in the broad agriculture sector. Above all, I am expecting favourable weather and political stability. Based on these assumptions and expectations, we have set the GDP target at 7.3 per cent for FY 2014-15."

The government in its perspective plan already targeted a double digit growth rate in the FY 2018 for the sake of becoming a middle-income country and cut poverty to below 15 per cent by 2021.