Originally posted in Dhaka Tribune on 10 May 2022
Bangladesh’s per capita income surges to $2,824
As per the estimate, the GDP growth rate is 7.25% in FY22
The country’s per capita income increased by US $233 to $2,824 during FY22, as per a provisional estimate by the Bangladesh Bureau of Statistics (BBS).
Planning Minister MA Mannan disclosed this at a press briefing after the meeting of the Executive Committee of the National Economic Council (Ecnec) held at the NEC conference room in Dhaka on Tuesday, reports UNB.
Prime Minister Sheikh Hasina chaired the meeting, joining it virtually from her official residence Ganabhaban.
“Our per capita income went up to $2,824 or Tk241,470 in FY2021-22 which was $2,591 in the last FY 2020-21,” said Mannan.
Prime Minister Sheikh Hasina joins the virtual meeting of the Executive Committee of the National Economic Council (Ecnec) in Dhaka on Tuesday, May 10, 2022 PID
The GDP’s provisional estimate was done based on the available data and statistics for 6-7 months of the current FY 2021-22.
As per the estimate, the GDP growth rate is 7.25% in FY22, which was 6.94% in the last fiscal year, said the minister.
The country’s GDP has increased to $465 billion or Tk39,76,500 crore in 2021-22FY from $416 billion Tk35,30,200 crore in FY 2020-21.
Among the three major sectors, the growth rates are 2.20% in the agriculture sector, 10.44% in the industrial sector, and 6.31% in the service sector.
Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told Dhaka Tribune that although per capita income had gone up, it cannot be said that our average income has gone up.
Also, this 7.25% GDP growth, that has been announced, cannot be concrete as it is based on provisional data. Whether per capita income is actually $2,824 will be clearer around October and November. Hence, income going up cannot really be said at this moment, he also remarked.
Moreover, this economist thinks that there are several issues that need to be kept in mind.
“First, the way we calculate GDP in Bangladesh is not really how actual GDP is calculated. Second, the basis on which this calculation is based, I do not think there is complete data from different organizations. Many may have 5-6 months of statistics, at best. Third, it is very difficult for us to get the per capita income right by calculating the average because our income inequality is constantly increasing. Fourth, the question remains as to how much relief it will bring in the face of rising inflation in the country,” Rahman added.