1. admin@thebangladesh.news : The Bangladesh :
June 13, 2024, 10:11 pm

A realistic impression of growth targets

  • Update Time : Tuesday, May 14, 2024
  • 11 Time View

The government has set a target of bringing down the GDP growth to 6.5 percent for the current financial year (2023-24) by cutting down one percent from the apprehension of achievement. Out of ambition to deal with the global and domestic situation, the growth target for the next financial year is also being kept below 7 percent. In the latest Co-ordination Council meeting on ‘Financial Currency and Currency Exchange Rate’ analysis of the country’s economic situation, it has been estimated that the average growth for the next three financial years (2024-25 to 2026-27) will be around 7 percent. The finance department has said that this slowdown in growth has occurred due to various measures taken to control upward inflation. However, its dynamics will increase in the medium term.

But economists fear the growth target, while realistic and acceptable, will be difficult to achieve. Because investment is the driver of Gross Domestic Product (GDP) growth. Investment is not happening at the desired rate due to various crises. The GDP growth target for the current (2023-24) financial year is 7.5 percent. Which is Rs 50 lakh 6 thousand 872 crores. A large part of this comes from foreign direct investment or FDI. But despite various measures taken by the government to increase FDI, new foreign investment is decreasing. It has been reported that the net foreign investment flow in the financial year 2022-23 was 324 crore 96 lakh 80 thousand dollars. But in the previous year i.e. 2021-22 financial year this figure was 343 crore 96 lakh 30 thousand dollars. According to the calculations, the investment decreased by 5.52 percent during the year. Mainly factors like dollar crisis, money laundering and corruption, instability of the economy, suffering in access to services and energy crisis are considered as the main reasons for the decline in foreign investment.

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