The Asian Development Bank (ADB) has forecasted that Bangladesh's gross domestic product (GDP) would continue to maintain the similar strong growth at 6.9 percent this fiscal year (2021-22) as it did in the previous FY. Forecasting that GDP growth in FY2023 is expected to edge up to 7.1 percent, ADB in its report mentioned that private consumption would continue to be the main contributor to growth, buoyed by a modest increase in remittances.
The government must ensure
job security and create job
opportunities in the private sector
Despite infrastructure bottlenecks and shortage of power in industry, country's major macroeconomic indicators like the growth rate of GDP has remarkably increased over the last year. While the latest news is more on the positive side, the issue of inclusive growth must not be ignored. The rich-poor divide has been growing over the past decade and the fruits of the GDP growth have not trickled down to the masses. In fact, Bangladeshi economists have pointed out that much of this growth has been “jobless”. Boosting private-sector investment can reverse this bleak scenario and make this growth more inclusive.
It is envisaged that the increased public expenditure under the annual development programme, the implementation of mega projects and increased investment owing to setting up of economic zones will have positive impact on the macroeconomic indicators. As a result, the GDP growth rate will maintain the current momentum. Bangladesh has set a target to achieve 8.51 percent GDP growth by 2025. But achieving the target of 8.51 per cent GDP growth rate will be a challenge considering the effects of the coronavirus pandemic on the country’s business sector. In order to achieve the target of 8.51 per cent gross GDP growth rate by 2025, the government must ensure job security and create job opportunities in the private sector.
