GDP growth shrinks to 1.81pc in July-September quarter

Political unrest and limited amount of business activities have significantly affected the growth rate of gross domestic product (GDP) of Bangladesh in the first quarter of the ongoing fiscal year 2024-25.

The GDP growth rate has come down to 1.81 per cent in the July-September quarter, which was 6.04 per cent on the year-on-year basis.

Bangladesh Bureau of Statistics (BBS) published the GDP growth rate data on Monday.

According to the BBS report, the GDP growth rate shrank continuously in the last three consecutive quarters, beginning from January last year.

The report is calculated taking into consideration three key sectors of the economy - agriculture, industries and services. The agriculture sector was hit the hardest in the July-September quarter, with a meagre 0.16 per cent.

On the other hand, the service sector recorded only 1.54 per cent growth and the industries sector saw just 2.13 per cent growth in the quarter.

Speaking to Prothom Alo, a BBS top official said that the GDP growth in the first quarter has shrunk so much that it would be tough to achieve an expected growth rate if the rate does not jump in the remaining quarters of the fiscal year.

The Awami League government imposed curfew to quell the students’ quota reform movement which later morphed into student-people movement in the July-August. This imposition affected the people’s movement and business activities also shrank.

Later, when the interim government took charge, industrial production was hampered due to deteriorated law and order situation.

The International Monetary Fund (IMF) in December informed the Bangladesh authorities that the economic activities in the country have declined significantly. As a result, the GDP growth rate would shrink to 3.8 per cent at the end of the fiscal year.

The global lender, however, thinks the economy of Bangladesh would pick up the pace in the next fiscal year, i.e., 2025-26 and the growth rate would be around 6.7 per cent.