DHAKA, May 28: Bangladesh’s economy has estimated to have grown by 6.05 per cent during 2007-08, the finance ministry sources say.

The growth in gross domestic product was projected at 7 per cent in the annual budget in June 2007.

The downward revision of the GDP growth resulted from the twin floods and cyclone Sidr in 2007, said the finance ministry officials.

“The production of Aus and Aman, two major variety of paddy that Bangladesh produces, was severely affected by the floods and the cyclone, but a bumper Boro production has left a positive impact on the growth of the economy,” said a high finance ministry official on Tuesday.

Better outturn of potato and maize also contributed to higher growth in agriculture in the outgoing financial year, said the official. Export earning has showed a positive growth since the second quarter of the financial year while industries and services sectors also attained higher growth.

The volume of GDP in constant price (deducting inflation) has been estimated at Tk 3,21,333 crore while it is 5,41,132 crore in current price (without deducting inflation), said the finance ministry officials.

In 2006-07, the GDP volume was Tk 30,3207 crore in constant price and Tk 4, 67,494 crore in current price.

According to the latest estimate, the contribution of agriculture to GDP has fallen by 0.66 per cent to 20.71 per cent from 21.37 per cent for a number of reasons such as farmland depletion, floods and Sidr.

The contribution of industries and services sectors to GDP has increased by 0.34 per cent and 0.36 per cent in the outgoing financial year, according to the estimate.

Industries account for 29.74 per cent of GDP, up from 29.40 per cent on the figure of the past financial year, and services 49.58 per cent, up by 49.22 per cent.

Asked about growth rate, Zahid Baht, research director at the Bangladesh Institute of Development Studies, said the economy could grow much higher than 6.05 per cent if political situation had remained stable.