Budget eyes 6.5% GDP growth in FY27
Targets are designed to ensure stability, enhance purchasing power, and improve living standards, says finance minister.
The proposed national budget for FY27 eyes a GDP growth target of 6.5% in the next fiscal year.
"The government aims to reduce inflation to 7.5% and raise GDP growth to 6.5% in the upcoming fiscal year," said Finance Minister Amir Khosru Mahmud Chowdhury while placing the budget for FY27 in parliament today (11 June).
He said the targets are designed to ensure stability, enhance purchasing power, and improve living standards.
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Khosru said in recent years, Bangladesh's economy has experienced significant volatility, external pressures, and deep-rooted structural challenges. "To appreciate the magnitude of the current situation, it is important to reflect on our past performance," he added.
During the final fiscal year of the BNP government (FY2005–06), he said GDP growth stood at a strong 6.78%, supported by a vibrant and productive industrial sector.
"The economy was stable with a balanced relationship between national investment and savings. In contrast, the period under the fascist government has been marked by a steady economic slowdown. GDP growth declined to 5.78% in FY2022–23, further fell to 4.22% in FY2023–24, and has now eased to 3.49% in FY2024–25,"
He said this downward trend has been driven by a combination of factors, including sector-wide corruption, external shocks, rising inflation, and severe mismanagement and structural weaknesses in the financial sector.
The finance minister said elevated interest rates, persistent energy constraints, weakening investor confidence, and governance challenges have together dampened private-sector investment.
At the same time, he said rising prices have significantly eroded the purchasing power of ordinary citizens, making the cost of essential goods and services increasingly burdensome in daily life.
"Going forward, we aim to transform Bangladesh into a one-trillion dollar economy by 2034, driven by investment, productivity and job creation," he said.
Khosru went on saying, "At the same time, we seek to democratise economic opportunities across society, enabling us to harness the Demographic Dividend and the Longevity Dividend and translate them into a Democratic Dividend."
