Bangladesh economy grows 7.11% in FY 16

Last updated: October 26, 2016

Dhaka, Bangladesh (BBN) - Bangladesh economy grew 7.11 per cent in the fiscal year (FY) 2015-16 helped by stronger industrial performance, according to the official figures.
"Bangladesh economy grew by 7.11 per cent in the previous financial year," Planning Minister AHM Mustafa Kamal told reporters in the capital Dhaka on Tuesday.
Growth in the agriculture was recorded at 2.79 per cent, industry at 11.09 per cent, and the service sector at 6.25 per cent, according to the minister.
Bangladesh's gross domestic product (GDP) is now reportedly worth US$221 billion.
The per capita income stood at $1,465 last fiscal year, which was $1.0 less than the provisional data.
The minister attributed the lower final figure to the difference in exchange rate. In April, the exchange rate of dollar was BDT 78.15; currently it is BDT 78.27.
In fiscal 2014-15, Bangladesh's per capita income was $1,316.
The state-run Bangladesh Bureau of Statistics (BBS) released the final statistics on the Gross Domestic Product (GDP) and its related data.
Earlier, the BBS in the last quarter of the past FY 16 had released a preliminary GDP growth estimation at 7.05 per cent. In the last national budget for FY16, the government had set a target of GDP growth at 7.0 per cent.
The World Bank, in the latest edition of its Bangladesh Development Update released early this month, said industrial activity suffered due to supply disruptions and weaker consumer confidence than in fiscal 2014-15.
Bu last fiscal year, the overall imports for the industrial sector grew about 6.5 percent in dollar terms, mainly due to import of capital machinery, which grew 14.1 per cent, according to the WB.
Power plants, Padma Bridge construction, flyovers, expansion of industrial units, especially in garment and textile, spurred capital machinery imports.
It also said political stability and a decline in prices of capital machinery in international markets appear to have encouraged entrepreneurs to get into new ventures or expand their existing businesses.
The construction sub-sector performed better in fiscal 2015-16 than a year earlier. Real estate, renting and business activities have also performed better, it noted.
The real estate business recently recovered due to property price corrections, falling interest rates on home loans and sustained political stability.
The number of unsold ready apartments has now declined to 8,000 from 22,000 a couple of years back, according to the WB.
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