Showing resilience to internal and external crises, Bangladesh economy grew last year at an impressive rate, which was much above the global average, according to Bangladesh Bank (BB) annual report for 2012-13 released here today.The report, a flagship public of the central bank on economy, showed that the economy grew by 6.0 percent in 2013, much higher than the world economy advanced on average. “Using the 1995-96 base year the Bangladesh economy achieved GDP growth of 6.0 percent in FY13, and 6.2 percent using the 2005-06 base,” the report said.
The BB attributed the “solid economic growth rate” to the substantial remittance inflows and export activities.
According to the BB report, the global economy remained subdued at 3.2 percent in 2013, when the Bangladesh economy grew by 6.0 percent, reports BSS.
The growth in agriculture sector, however, declined from 3.1 percent in 2011-12 financial year to 2.2 percent in FY13, in crops and horticulture sub-sector slid to 0.2 percent in FY13 from 2.0 percent in FY12.
The report said credit flow to private sector declined from 19.7 percent in FY12 to 10.8 percent in FY13, but this decline was compensated partly by newly introduced overseas financing by Bangladeshi corporate.
Industry sector grew slightly more at 9.0 percent in FY13 compared to 8.9 percent in FY12 driven in large part by faster growth in mining and quarrying, construction and small scale industries.
Gross fixed investment increased slightly to 26.8 percent of GDP in FY13 from 26.5 percent in FY12 due to increasing growth of public investment (Chart 1.1).
During the same period, private investment decreased from 20.0 to 19.0 percent of GDP and public investment increased from 6.5 to 7.9 percent of GDP. National savings rates increased slightly from 29.2 percent of GDP in FY12 to 29.5 percent of GDP in FY13.
Domestic savings as a percent of GDP remained unchanged at 19.3 percent in FY13. The domestic savings-investment gap as a percentage of GDP, correspondingly, increased from 7.2 percent in FY12 to 7.5 percent in FY13. A lower trade deficit and higher growth of workers’ remittances led the current account balance to a significant surplus of $2525 million in FY13. The overall balance also showed a huge surplus of $5128 million in FY13 with substantial contributions from current account balance, capital account and financial account.