A Clarification from City Bank Capital Resources Limited
On January 2, 2025, City Bank Capital Resources Limited released its Macro Economic Outlook 2025 report, which included a notable estimation regarding the country’s Gross Domestic Product (GDP). In this report, the bank suggested that Bangladesh’s GDP could be around $300 billion, a figure significantly lower than the previous government’s claim of $459 billion. However, in a clarification issued today, January 6, 2025, City Bank Capital has taken a step back to correct its stance on this estimation.
The Inadvertent Assumption
According to City Bank Capital, it "inadvertently" assumed the country’s GDP at $300 billion based solely on electricity consumption. The bank acknowledges that GDP involves numerous factors beyond electricity consumption, including productivity, trade, workforce dynamics, and many others. This realization has prompted a clarification from the bank.
Acknowledging the Complexity of GDP Estimation
City Bank Capital understands and respects the efforts of economists, statisticians, and regulators working on these estimates. The bank supports ongoing endeavors for transparency and accuracy in estimating the country’s GDP. This acknowledgment is crucial as it underscores the complexity of calculating GDP and the need for a comprehensive approach.
The Importance of Transparency and Accuracy
Transparency and accuracy are essential components of any economic estimate, including GDP calculation. City Bank Capital’s clarification reflects its commitment to fostering constructive discussions that strengthen Bangladesh’s economic growth and credibility. The bank has rectified its previous report on the GDP number and apologizes for any confusion caused.
A Review of the Previous Report
City Bank Capital’s Macro Economic Outlook 2025 report highlighted discrepancies in electricity consumption between Bangladesh and regional benchmarks. According to data from the Bangladesh Power Development Board, the country consumed only 96 million megawatts of electricity in the last fiscal year ending in June, which is lower than expected. The bank questioned how Bangladesh could have an outlier edge for such a significantly higher economic output than India, Pakistan, or China per unit of electricity consumption.
Bangladesh’s GDP Figures Need Recalibration
The City Bank Capital report stated that "Bangladesh’s GDP figures need recalibration." This assertion underscored the bank’s concern regarding the accuracy and reliability of existing GDP estimates. The clarification from City Bank Capital today reinforces this statement, emphasizing the need for a thorough reevaluation of Bangladesh’s GDP.
A Commitment to Constructive Discussion
City Bank Capital is committed to fostering constructive discussions that strengthen Bangladesh’s economic growth and credibility. The bank has rectified its previous report on the GDP number and requests everyone not to refer to the inadvertently assumed GDP figure in any references.
Conclusion
In conclusion, City Bank Capital Resources Limited’s clarification regarding its GDP estimation marks an important step towards ensuring transparency and accuracy in estimating Bangladesh’s GDP. By acknowledging the complexity of GDP calculation and committing to constructive discussions, the bank reinforces its commitment to fostering economic growth and credibility in Bangladesh.
Recommendations for Future Economic Estimates
- Comprehensive Approach: Any future estimates should incorporate a comprehensive approach, considering multiple factors beyond electricity consumption.
- Transparency and Accuracy: It is essential to prioritize transparency and accuracy in economic estimates to ensure the reliability of data.
- Constructive Discussion: Fostering constructive discussions among economists, statisticians, regulators, and other stakeholders can help strengthen Bangladesh’s economic growth and credibility.
By following these recommendations, future economic estimates can provide a more accurate representation of Bangladesh’s GDP, ultimately contributing to the country’s economic growth and development.
