Growth rate sure to be over 2% in FY21 | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Growth rate sure to be over 2% in FY21

Analysis

Professor Mustafizur Rahman
06 January, 2021, 10:30 pm
Last modified: 06 January, 2021, 10:41 pm

Related News

  • Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia
  • Govt to form fund with seized assets to compensate depositors, aid poor: BB governor
  • 1,400 stolen firearms, 2.5 lakh rounds of ammo yet to be recovered: CA’s special assistant
  • Recovering Dhaka’s canals from encroachers won’t be easy – Baunia canal shows why
  • How BWDB plans to evict 4,000 illegal structures along Dhaka embankment

Growth rate sure to be over 2% in FY21

In the current financial year, the main indicators of the economy are showing signs of recovery from the coronavirus shocks

Professor Mustafizur Rahman
06 January, 2021, 10:30 pm
Last modified: 06 January, 2021, 10:41 pm
Professor Mustafizur Rahman; Illustration: TBS
Professor Mustafizur Rahman; Illustration: TBS

Even though more than six months have passed in the current fiscal year, the actual growth rate of the gross domestic product (GDP) of last year is yet to be ascertained. It is impossible to estimate the growth of the current financial year without the actual data of the previous year.

If last year's actual GDP growth surpasses or falls short of the Bangladesh Bureau of Statistics' (BBS) provisional estimates of 5.24%, the same amount of change will be in the growth this year. In this situation, the primary task of the BBS is to publish the final accounts of the last financial year.

It is difficult to estimate the actual growth until the fiscal year comes to an end. I don't want to create controversy by saying a number. However, by reviewing the nature of the macroeconomic dynamics, one can get an idea about this.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

In the current financial year, the main indicators of the economy are showing signs of recovery from the coronavirus shocks. But it will take a long time for the economy to return to normal.

During the preparation of the budget for the current fiscal year, the GDP growth target was set at 8.20% based on several assumptions and hypotheses. At the end of six months, many of these assumptions have proved ineffective.

Even though a 22% growth in export earnings has been targeted for this year, the sector has seen a negative growth in the first six months.

Along with the recovery of the economy, the revenue growth is targeted to increase by about 50% from that of the previous year. However, the average growth in import duty, value added tax and income tax is only 5%.

Against the target of a 14% growth in credit flow to the private sector, the achievement is only 8%. Meanwhile, import growth remains in the negative, while the target is to achieve a double-digit growth in the sector.

Overall, the current state of all macroeconomic indicators for the current financial year is worse than the budgetary assumption.

After reviewing all these indicators, it is easy to say that achieving the target of 8.20% GDP growth set in the national budget or 7.40% growth target set in the Eighth Five-Year Plan will not be possible this year.

But, since economic activities have begun and production in mills is also on the rise, the growth rate is sure to be over 2% by the end of the year.

We need to focus on increasing private sector investment to revive the economy. The smooth implementation of the government's ongoing loan and incentive packages must also be ensured.

Moreover, private investment will not grow as expected if the initiatives taken in the areas of logistics, trade facilitation, one-stop service and ease of doing business are not implemented quickly.

In order to ensure the desired development of the economy, importance must be given to the acquisition of internal resources. To this end, the government should be proactive in preventing trade mispricing, digitisation of VAT and other policy reforms.

 

Professor Mustafizur Rahman spoke to jahidul Islam over the phone.


Professor Mustafizur Rahman is a Distinguished Fellow of the Centre for Policy Dialogue


 

Economy / Top News

FY21 / growth rate / Recovery / Coronavirus

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Bangladesh's growth forecast unchanged: WB report
    Bangladesh's growth forecast unchanged: WB report
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Swedish activist Greta Thunberg, who departed Israel by plane on Tuesday after being detained aboard the Gaza-bound British-flagged yacht "Madleen" after Israeli forces boarded the charity vessel as it attempted to reach the Gaza Strip in defiance of an Israeli naval blockade, talks to journalists surrounded by French police as she arrives at a terminal at the Paris-Charles de Gaulle Airport, in Roissy-en-France near Paris, France, June 10, 2025. REUTERS/Gonzalo Fuentes
    Greta Thunberg says she was kidnapped by Israel in international waters

MOST VIEWED

  • On left, Abdullah Hil Rakib, former senior vice president (SVP) of BGMEA and additional managing director of Team Group; on right, Captain Md Saifuzzaman (Guddu), a Boeing 787 Dreamliner pilot for Biman Bangladesh Airlines. Photos: Collected
    Ex-BGMEA SVP Abdullah Hil Rakib, Biman 787 pilot Saifuzzaman drown in boating accident in Canada
  • File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar
    Dhaka: The city we never want to return to, but always do
  • Chief Adviser Muhammad Yunus leaves for a four-day visit to the United Kingdom from the Dhaka airport on 9 June 2025. Photo: CA Press Wing
    CA Yunus leaves for UK; discussion expected on renewable energy investment, laundered money
  • File Photo: Collected
    Enhanced surveillance at Ctg airport amid rising global Covid-19 cases
  • Inside the aid ship stormed by Israeli forces on 9 June 2025. Photo: BBC
    Israeli forces stormed aid boat carrying Greta Thunberg bound for Gaza: Freedom Flotilla Coalition
  • Photos: Collected
    Abdul Hamid wasn't arrested because he's not wanted right now: Home adviser

Related News

  • Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia
  • Govt to form fund with seized assets to compensate depositors, aid poor: BB governor
  • 1,400 stolen firearms, 2.5 lakh rounds of ammo yet to be recovered: CA’s special assistant
  • Recovering Dhaka’s canals from encroachers won’t be easy – Baunia canal shows why
  • How BWDB plans to evict 4,000 illegal structures along Dhaka embankment

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

5h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

1d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

3d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

Greta Thunberg deported from Israel

Greta Thunberg deported from Israel

7h | TBS World
BNP is not a revolutionary party: Mirza Fakhrul

BNP is not a revolutionary party: Mirza Fakhrul

8h | TBS Today
News of The Day, 10 JUNE 2025

News of The Day, 10 JUNE 2025

6h | TBS News of the day
Trump sends 2,000 more National Guard and 700 Marines to Los Angeles

Trump sends 2,000 more National Guard and 700 Marines to Los Angeles

9h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net