Finance Minister A H M Mustafa Kamal on Thursday defended the growth-rate-calculation process for the fiscal year (FY) 2020-21. The rate finally rose to 6.94 per cent from the provisional 5.43 per cent, although the economy was severely hit by the Covid-19 pandemic-linked disruptions. You will...
Kamal defends final GDP calculation showing higher growth
FE REPORT | Published: February 11, 2022 10:03:02
Finance Minister A H M Mustafa Kamal on Thursday defended the growth-rate-calculation process for the fiscal year (FY) 2020-21. The rate finally rose to 6.94 per cent from the provisional 5.43 per cent, although the economy was severely hit by the Covid-19 pandemic-linked disruptions.
"You will get the same (growth rate) - as described by the planning minister, no matter how you calculate it."
The minister said some people might say that the assessment was not correct, the government exaggerated it. "No it (allegation of exaggeration) is never ever right."
The jump of the growth figure raised eyebrows of many, as in the last FY, global economy shrunk drastically, and almost all countries saw negative growth.
"Our achievement…you are seeing here…is there anywhere like this?" Mr Kamal said while briefing newsmen after a virtual meeting of the Cabinet Committee on Government Purchase.
"When the economy of other countries went to contraction, we remained at positive corner, our economy never fell. Our economy was moving forward and growth was there. That's why we were praised globally."
One can get the account, if checked, whether there was high inflation rate or not. Actually there was no such pressure, and the foreign currency exchange rate was stable, the minister opined.
"When revenue generation was tough, our revenue income also had 50 per cent growth. Export saw almost 30 per cent growth, import also had growth, and remittance saw 36 per cent growth." He noted that Bangladesh had no negative record during the year (under review).
"There was no negative growth in any of the avenue of the economy," Mr Kamal said, adding that it was reflected positively in the Gross Domestic Product (GDP).
"Our expansionary monetary policy also worked, and thus the GDP saw the growth."
Bangladesh follows the System of National Accounts 2008 of the International Monetary Fund (IMF) in GDP calculation like other countries worldwide, he added.