Khosru reaffirms to turn Bangladesh into a trillion-dollar economy by 2034

Finance Minister Amir Khosru Mahmud Chowdhury yesterday (23 April) reaffirmed the government’s ambition to turn Bangladesh into a trillion-dollar economy by 2034 as he outlined progress on budget implementation and flagged ongoing economic reforms.

Presenting the second-quarter report on budget execution for the current fiscal year in the Jatiya Sangsad, Khosru said the target would be achieved through sustained growth, stronger institutions and an improved investment climate, reports BSS.

“With the cooperation of all, it would be possible to build a sustainable, prosperous and democratic Bangladesh, transform the country into a trillion-dollar economy by 2034, and establish it as a developed and dignified nation on the global stage,” he said.

He stressed that continuity in policy, stronger institutional capacity, good governance and an investment-friendly environment would be key to navigating current economic pressures.

The minister said the government had taken steps to liberalise and deregulate the economy, improve ease of doing business and restore discipline in the financial sector.

“At the same time, opportunities have been created to place the economy on a stronger footing through enhancing revenue mobilisation capacity, diversifying exports, expanding skill- and technology-driven production, and encouraging new domestic and foreign investments,” he said.

Efforts are also under way to strengthen governance in the banking sector, reduce non-performing loans and introduce risk-based supervision. “These measures are expected to enhance stability and transparency in the financial sector, which will, in turn, support sustainable long-term growth,” he added.

Khosru also expressed confidence that the country could overcome economic challenges through public support and government initiatives, citing the legacy of independence and political leadership as guiding factors.

Global outlook, risks

Referring to projections by the International Monetary Fund, the minister said global growth was expected to remain stable, reaching 3.3% in 2025 and hovering around 3% in the medium term.

Emerging Asian economies are likely to lead with around 5% growth, while advanced economies may slow to 1.7%. Global inflation, which peaked at 8.7% in 2022, is projected to fall to 4.2% in 2025 and 3.8% in 2026.

“Inflation in key import partners such as China and India is also expected to remain moderate, which may help Bangladesh ease domestic price pressures,” he said.

However, he warned that the ongoing Middle East crisis could disrupt this outlook. Citing estimates from the Asian Development Bank, he said prolonged conflict could cut global growth by up to 0.9 percentage points and South Asian growth by as much as 1 percentage point.

The crisis has already driven up global fuel and fertiliser prices, posing risks to Bangladesh’s energy security and inflation management, he added.

Domestic performance, outlook

Highlighting domestic indicators, the minister said revenue collection rose by 13.6% in the July-December period of FY2025-26, compared with 4.7% a year earlier. Government expenditure increased by 14.1%, while implementation of the Annual Development Programme reached 13.56% of total allocation.

Foreign exchange reserves stood at $33.19 billion at the end of December 2025, up from $26.22 billion a year earlier, he said.

Inflation has also eased, with the 12-month average falling to 8.77% in December 2025 from 10.34% the previous year. Khosru said ongoing measures — including tighter monetary policy, prudent public spending and supportive fiscal steps – were expected to bring inflation down to 7% by the end of the current fiscal year.

Looking ahead, inflation is projected to fall further to 7.5% in FY2026-27, 6.5% in FY2027-28 and 6% in FY2028-29, alongside a gradual pick-up in growth.

Despite the positive outlook, the minister acknowledged challenges including global trade protectionism, rising competition, high interest rates and structural constraints affecting private investment and revenue mobilisation.

To address these, the government is prioritising an investment- and export-led growth strategy, focusing on deregulation, policy continuity, faster approvals, improved access to land and energy, and stronger legal protections for investors.

“Efforts are also underway to simplify licensing systems and expand digital one-stop services under the Bangladesh Investment Development Authority,” he said.

Khosru said Bangladesh’s large workforce and expanding industrial base would support economic recovery and long-term growth, expressing optimism that sustained reforms and collective efforts would help achieve a resilient and developed economy.