The government has set an ambitious economic growth target of 7.5% for the upcoming fiscal year, although the country confronts fresh headwinds due to increasing commodity prices globally and is still recuperating from the shocks of the coronavirus pandemic. It also maintained its prior forecast of 7.2% GDP growth for the current fiscal year, which ends in June.
The growth forecast was revealed at a meeting of the Fiscal Coordination Council, which was presided over by Finance Minister AHM Mustafa Kamal. There were top officials from the finance ministry, the Bangladesh Bank, and other ministries in attendance. The growth target is higher than the World Bank and Asian Development Bank predictions. Bangladesh’s GDP is forecast to rise by 6.7% in FY23, according to the World Bank, while the ADB expects it to grow by 7.1%.
Prof Alam stated that achieving the target is doable if the world situation does not worsen. He called the Russia-Ukraine conflict a major issue and blamed it for growing inflation. At the coordination council meeting, the inflation rate for FY23 was estimated to be 5.5%. The inflation target for the current fiscal year was set at 5.3 percent when the budget for the current fiscal year was released in June of last year. It was eventually revised increased to 5.7% when prices rose due to a number of factors. In February, inflation reached 6.17 percent, the highest level in 16 months, owing to rising food prices.
According to the World Bank’s newest report on Bangladesh, the inflation outlook has worsened due to the war in Ukraine and associated sanctions, which have resulted in increased global commodity prices. According to the World Bank, non-food prices are anticipated to continue high as transportation costs rise, putting pressure on other products. According to the government’s projections, the economy will be worth $512 billion, or Tk 44,12,849 crore, in FY23, up from Tk 38,95,483 crore in FY22.