Bangladesh revises down FY24 GDP growth to 4.22% from 5.82% earlier

As a result, per capita income stood at $2,738 in FY24, down from the preliminary estimate of $2,784.

Domestic financial sector weaknesses and labour unrest could pose short-term risks for the interim government, the finance ministry recently cautioned chief adviser Muhammad Yunus.

Finance adviser Salehuddin Ahmed presented a report titled ‘Bangladesh's Economy: Recent Challenges and Future Actions’ to Yunus.

"In addition to inflation, restoring discipline in the financial sector and addressing labour unrest before it escalates should be top priorities for the interim government," the ministry was quoted as advising by a domestic media report. 

Reducing inflation rate below 10 per cent was a major challenge, but that has been achieved now, the finance ministry report said. Inflation is expected to fall to 8 per cent by June, and if it drops below 6.5 per cent in future, the government will consider reducing subsidies by raising gas and electricity prices.

Flaws in the supply system continue to undermine monetary and fiscal measures taken to control inflation, said the report.

Measures have been taken to control subsidies by lowering production costs without raising electricity prices for consumers, resulting in projected savings of Tk11,444 crore—about a tenth of the sector's total expenditure, it added. 

ALCHEMPro News Desk (DS)