The country’s gross domestic product (GDP) growth has significantly declined, according to the final count released by the Bangladesh Bureau of Statistics (BBS) on Monday (February 10).

While the provisional estimate for the 2023-24 fiscal year indicated a GDP growth rate of 5.82 per cent, the final figure shows a drop of 1.56 per centage points, settling at 4.22 per cent.

The BBS prepares and publishes critical statistics on various sectors, including population, agriculture, industry, demographics, economy, socio-economic issues, natural resources, and the environment. Among these indicators, GDP growth stands as one of the most important macroeconomic estimates reflecting the nation’s economic performance.

Initially, the provisional GDP estimate for the 2023-24 fiscal year was calculated using preliminary data. However, with the release of final data, the BBS recalculated the GDP growth rate, revealing a substantial decline compared to earlier projections.

This downward revision highlights challenges faced by key industries, particularly manufacturing and industrial production, which experienced slower growth due to multiple factors.

Factors behind the decline

Several reasons contributed to the reduced GDP growth rate:

Sluggish industrial production: Growth in industrial output slowed significantly, impacting overall economic performance.

Data revisions: Final data often paints a more accurate picture, uncovering discrepancies that may not have been apparent in provisional estimates.

Economic challenges: Broader economic constraints, such as rising costs, supply chain disruptions, and global market volatility, likely played a role in dampening growth prospects.

Implications for the economy

This reduction in GDP growth underscores the ongoing struggles within Bangladesh’s economy. Despite initial optimism reflected in the provisional figures, the final numbers reveal deeper underlying issues requiring urgent attention.

As the interim government continues its efforts to stabilise the economy and implement reforms, achieving robust GDP growth remains a priority. Addressing inefficiencies, promoting investment, and ensuring better resource allocation will be crucial steps moving forward.

The revised GDP growth figure serves as a wake-up call for stakeholders to reassess strategies and work collaboratively toward restoring momentum in the nation’s economic trajectory.