Investment-GDP ratio increases slightly in FY20

Country’s total investment in terms of Gross Domestic Product (GDP) increased modestly in the last fiscal year (FY20) ended on June 30, 2020.

The provisional estimate of GDP, released by Bangladesh Bureau of Statistics (BBS), showed that investment-GDP ratio stood at 31.75 percent in FY20 which was 31.57 percent in FY19.

Gross domestic investment (in current market price) stood at Tk 8.88 trillion in the last fiscal year, registering 10.58 percent growth over Tk 8.03 trillion in FY19.

The Seventh Five-Year Plan (7FYP) earlier projected to enhance the ratio to 34.40 percent in FY20.

Due to spread of Covid-19 which severely stalled the economic and business activities in the country during the last quarter (April-June) of the last fiscal year, the government also revised down the target to 20.80 percent.

The budget speech, presented it the national parliament by the finance minister, mentioned that big disruption in private investment compelled to revise down the private investment to GDP ratio to 12.72 percent in FY20 which was 23.54 percent in FY19. 

The provisional estimate, however, showed that private investment to GDP ratio stood at 23.63 percent in the last fiscal year while public investment to GDP ratio was 8.03 percent.