Govt's expansionary monetary policy played role to achieve higher growth: Kamal

Finance Minister AHM Mustafa Kamal Thursday said the government's expansionary monetary policy has played a vital role to achieve higher growth in the last fiscal 2020-21 despite the Covid-19 pandemic. "Our expansionary monetary policy has played a role in this regard. We followed this policy when many countries in the world didn't dare to take this path," he said.

 

The finance minister said this virtually while replying to a volley of questions after chairing the meetings on the Cabinet Committee on Government Purchase (CCGP) and the Cabinet Committee on Economic Affairs (CCEA).

 

According to the final report of Bangladesh Bureau of Statistics (BBS), the size of the GDP in the last fiscal year (FY21) stood at Taka 35,302 billion or US$416 billion,  As per the data, the GDP growth rate of the country reached 6.94 perrcent in FY21 while the per capita income increased to $2,591.

 

Kamal said Bangladesh has been able to reach close to the growth target in the fiscal due to an increase in import-export, revenue, and remittances. "Our economy has never been down. Our inflation did not increase; the interbank exchange rate was also stable. Revenue collection is the most difficult task, there has also been a 15 percent growth," he said.

 

He mentioned that Bangladesh Bureau of Statistics assesses GDP in accordance with the International Monetary Fund's System of Accounts 2008. The whole world follows this method. The planning minister has already explained why and how the GDP growth has increased," he added. Kamal said that while the global economy was heading for negative growth due to the coronavirus, Bangladesh's economy was still on a positive trend.

 

"In the last financial year, exports have increased by 30 percent and imports have also increased. Remittances have also increased. Although remittances are not included as GDP, they have contributed to the increase in per capita income," he added.