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Bangladesh’s per capita income has decreased in dollar terms but increased in taka during the fiscal year 2023-24, According to the latest data from the Bangladesh Bureau of Statistics (BBS).
The final estimates for FY24 show the per capita income stands at $2,738, reflecting a slight decline of $11 from the previous year’s $2,749. The preliminary estimate for FY24 had projected the income at $2,784. However, in taka terms, per capita income has risen to Tk 3,04,102, up from Tk 2,73,360 in FY23.
Dr Mohammad Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID), explained that the decline in dollar terms is largely due to the depreciation of the taka. He added that a further rise in the dollar’s value could significantly impact the country’s GDP.
GDP Growth Slips Below 5%
The BBS also reported that Bangladesh’s GDP growth rate for FY24 stands at 4.22%, a significant decline from the initial estimate of 5.82%. This marks the lowest growth in three years, with prior years showing rates of 3.45% in FY20, 6.94% in FY21, 7.10% in FY22, and 5.78% in FY23.
Struggles in Key Sectors
Bangladesh’s industrial, service, and agricultural sectors faced significant challenges in FY24. The industrial sector grew by only 3.51%, a sharp drop from the 8.37% growth in FY23. The preliminary estimate for industry growth had been 6.66%. The agricultural sector showed a modest growth of 3.30%, slightly down from 3.37% in FY23. The service sector recorded a growth of 5.09%, a decline from the previous year’s 5.37%. The slowdown in these major sectors contributed to the overall dip in GDP growth.
Inflation Crisis Intensifies
Bangladesh faced an inflation crisis in 2024, with the average inflation rate reaching 10.33%, far outpacing the 7.94% growth in wages. Over the past three years, inflation has consistently risen at double the rate of wage increases. In 2023, inflation hit 9.55%, while wages grew by only 7.43%. In 2021, inflation was 5.54%, while wages grew by 6.07%.
Food inflation surged to 14.10% in 2024, marking a 16-year high and making it one of the toughest years for consumers. Although the official inflation rate was initially reported below 10%, updated data revealed it had climbed to 11.66% by July 2024. Despite government reassurances, many citizens continue to struggle with rising prices of essential goods.
Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, emphasized the difficulties faced by people under the weight of inflation, stating, “People are suffering under inflation. Wages remain stagnant while prices rise. The government must provide more support for those struggling.”
