Bangladesh Economy: News & Updates

[white_pawn]

Per capita income increases ​

Bangladesh Sangbad Sangstha . Dhaka

Despite decrease in the Gross Domestic Product, the per capita income increased in the 2008-09 fiscal year, ended on June 30.
The latest data of the Bangladesh Bureau of Statistic shows per capita income rises to US690 dollars at the end of June this year, which was US608 dollars in 2007-08 financial year.
‘The per capita income rises due to the increase in the remittance inflow and export earning,’ said economist professor Abu Ahmed.
Besides, he said the GDP declined slightly last year, but growth in agriculture sector was positive, which also helped increase per capita income.
According to the BBS statistic, the per capita income in local currency was Taka 47,373 and the population was 14.42 crore in the 2008-09 financial year.
The statistic also showed law inflation during the period, which was a major contributory factor to the increase in the per capita income.
The point-to-point inflation decreased to a six-year low of 2.25 in the end of June. Earlier in 2003, the country saw the lowest 2 per cent inflation on point-to-point basis. The inflation, however rose to a record high of 11 per cent in January 2008, according the BBS statistics.

 

[eastwatch]

Per capita income increases ​

Bangladesh Sangbad Sangstha . Dhaka

Despite decrease in the Gross Domestic Product, the per capita income increased in the 2008-09 fiscal year, ended on June 30.
The latest data of the Bangladesh Bureau of Statistic shows per capita income rises to US690 dollars at the end of June this year, which was US608 dollars in 2007-08 financial year.
‘The per capita income rises due to the increase in the remittance inflow and export earning,’ said economist professor Abu Ahmed.
Besides, he said the GDP declined slightly last year, but growth in agriculture sector was positive, which also helped increase per capita income.
According to the BBS statistic, the per capita income in local currency was Taka 47,373 and the population was 14.42 crore in the 2008-09 financial year.
The statistic also showed law inflation during the period, which was a major contributory factor to the increase in the per capita income.
The point-to-point inflation decreased to a six-year low of 2.25 in the end of June. Earlier in 2003, the country saw the lowest 2 per cent inflation on point-to-point basis. The inflation, however rose to a record high of 11 per cent in January 2008, according the BBS statistics.

Thanks white_pawn for posting the article. I had this one in my computer memory, but somehow I lost it.

The US$690 per capita income is small, but when multiplied with the number of population, which stands at 144.2 million, the Gross National Income (GNI) becomes $99.498 billion. Compare this nearly 100 billion dollar GNI with the 1971 GDP, when we fought out of an union with Pakistan. The GDP was only 10 billion dollar and the per capita GDP was only $130.

With so many infrastructural and industrial projects now either undertaken or in the planning stage, it is only a matter of time when our GDP will grow double digit every year. A 10 year preparation time is required to reach that stage. A 10% growth per year means doubling the economy in only seven years.

Govt has decided to remove bottlenecks that hamper all other development efforts. Inadequacy in electricity production and absence of a number of long bridges over big rivers are two of these bottlenecks. Another bottleneck is the absence of a deep seaport. All these are being taken care of.

When the deep seaport is built at a cost of $10 billion, it will serve not only BD, but also many Indian east coast ports including Kolkata, and its almost landlocked NE as well as Yunan province of China, Nepal, Bhutan and hopefully Burma. Indeed, the new port will be very busy.

At present, the oceangoing large ships carry goods to Singapore, where the goods are transhipped via smaller ships to the respective ports. Large ships cannot enter even most of the Indian seaports. Neither the sea is deep nor the ports have the needed facilities in those ports. After the construction, the Chittagong deep seaport will take over many of the jobs now undertaken by Singapore.

BD still has an image problem, but it will go away in due time. Even with this bad image, BD has been receiving orders to build small and medium ships from european countries like Germany, Holland and Denmark. Shipbuilding will pull up the BD GDP.

Germany alone has ordered US$355 million worth of ships to this country. Yes, we are a country that started with ship breaking but is now building nice looking ships for the european countries.

BD wants to remain a moderate Muslim country, where religious fanaticism is not championed. We believe the country's development can only come through education and hard labour, and not through the barrels of guns.

Many govts of the developed world have opened their markets for 'Made in Bangladersh' products so that BD shuns away from guns, can keep on developing and rise up the ladder. We truly appreciate their cooperation.

 

[TopCat]

Per capita income increases ​

Bangladesh Sangbad Sangstha . Dhaka

Despite decrease in the Gross Domestic Product, the per capita income increased in the 2008-09 fiscal year, ended on June 30.
The latest data of the Bangladesh Bureau of Statistic shows per capita income rises to US690 dollars at the end of June this year, which was US608 dollars in 2007-08 financial year.
‘The per capita income rises due to the increase in the remittance inflow and export earning,’ said economist professor Abu Ahmed.
Besides, he said the GDP declined slightly last year, but growth in agriculture sector was positive, which also helped increase per capita income.
According to the BBS statistic, the per capita income in local currency was Taka 47,373 and the population was 14.42 crore in the 2008-09 financial year.
The statistic also showed law inflation during the period, which was a major contributory factor to the increase in the per capita income.
The point-to-point inflation decreased to a six-year low of 2.25 in the end of June. Earlier in 2003, the country saw the lowest 2 per cent inflation on point-to-point basis. The inflation, however rose to a record high of 11 per cent in January 2008, according the BBS statistics.

It should be read as "Growth rate of GDP". GDP did not decrease but the growth rate of GDP decreased.

 

[eastwatch]

It should be read as "Growth rate of GDP". GDP did not decrease but the growth rate of GDP decreased.

Yes, you are correct, the rate of increase of GDP has decreased, but not the GDP itself.

By the way, some explanation about GNI :

Gross National Income (GNI) = Gross Domestic Product (GDP)
+ Remittance (inflow) from abroad
- Outflow of money

Comparing to the previous fiscal, last fiscal's GNI incresed by ($690 - $609) x 144.2 persons = $11.802 billion, and the GNI stands at $99.498 billion. I am expecting the GNI to be more than US$105 billion this fiscal year.

 

[idune]

Per capita income increases

Bangladesh Sangbad Sangstha . Dhaka

Despite decrease in the Gross Domestic Product, the per capita income increased in the 2008-09 fiscal year, ended on June 30.
The latest data of the Bangladesh Bureau of Statistic shows per capita income rises to US690 dollars at the end of June this year, which was US608 dollars in 2007-08 financial year.
‘The per capita income rises due to the increase in the remittance inflow and export earning,’ said economist professor Abu Ahmed.
Besides, he said the GDP declined slightly last year, but growth in agriculture sector was positive, which also helped increase per capita income.
According to the BBS statistic, the per capita income in local currency was Taka 47,373 and the population was 14.42 crore in the 2008-09 financial year.
The statistic also showed law inflation during the period, which was a major contributory factor to the increase in the per capita income.
The point-to-point inflation decreased to a six-year low of 2.25 in the end of June. Earlier in 2003, the country saw the lowest 2 per cent inflation on point-to-point basis. The inflation, however rose to a record high of 11 per cent in January 2008, according the BBS statistics.

This per capital income for 2008-2009 means - current regime which started its tenure in January, 2009 has inherited this income level and has the opportunity to improve on from this $690 level. Let’s see next year how it turns out.

 

[idune]

On economic optimism current regime is contemplating to increase power tariff by staggering 30%. If they do so it will erode any competitive advantage Bangladesh garments and most other export industries. Tariff may need to be adjusted but anything pass 5% is just reckless and motivated move by this regime. One has to wonder by who’s advise Awami regime is contemplating such suicidal decision.
In manpower export, because of hostile move and comments Saudi Arab and Malaysia, two major importers virtually stopped new recruitment.

If these two pillars of our export (garments and manpower) weaken none of optimistic forecast will have any chance of realizing. This is not to put negative light on our economic prospect but to show the real danger we are facing from the policy this regime is pursuing.

Report on power tariff increase in Bangla:
AMAR DESH PUBLICATIONS

 

[eastwatch]

LOCALLY PRODUCED TEXTILE MACHINERY IN BANGLADESH

In fact, it took three decades for Bangladesh to be among the world's top three exporters of readymade garment, but the success has come from an industry primarily depending on imported machinery, according to recent media reports. Now the scenario has started changing with the passage of time as a new generation of small and medium entrepreneurs are producing machinery locally to cater to the garment industry. Many entrepreneurs are supplying garment machinery at a 'competitive price' and are reportedly performing better than the imported ones. The participation of Bangladeshi machinery manufacturers in the 10th Textech Exposition held in the capital recently demonstrated their ability.

As reported in the media, some enterprises have already earned name and fame in manufacturing important machinery such as conveyer driers, thread sucking machine and fabric inspection machine that perform much better than those imported from India and China. In three years, supply of such local machinery to the growing garment industry has been noticeable as the entrepreneurs are hopeful of extending their market abroad. Though they are using some Korean and Taiwanese components initially to maintain quality of their machineries, they are confident of producing those at home.

Bangladesh textile and garment entrepreneurs spend more than a billion dollars annually for sourcing machineries to expand the production facilities. Countries like China, Japan, Germany, Switzerland, India, Turkey and Taiwan are among the machinery sources for the garment and textile industries that earn $12 billion plus annually. According to the President of the Bangladesh Knitwear Manufacturers and Exporters Association, performance of local machinery has been improving so much that the industry is turning to local equipment instead of importing those from abroad. Low cost, reliability and after sales services are attracting garment manufacturers gradually to the local machinery suppliers.

The New Nation - Internet Edition

 

[TopCat]

Yes, you are correct, the rate of increase of GDP has decreased, but not the GDP itself.

By the way, some explanation about GNI :

Gross National Income (GNI) = Gross Domestic Product (GDP)
+ Remittance (inflow) from abroad
- Outflow of money

Comparing to the previous fiscal, last fiscal's GNI incresed by ($690 - $609) x 144.2 persons = $11.802 billion, and the GNI stands at $99.498 billion. I am expecting the GNI to be more than US$105 billion this fiscal year.

Yes it does make sense, why per capita income is rising at a faster rate than the GDP itself.

 

[M_Saint]

double post

 

[M_Saint]

Thanks white_pawn for posting the article. I had this one in my computer memory, but somehow I lost it.

The US$690 per capita income is small, but when multiplied with the number of population, which stands at 144.2 million, the Gross National Income (GNI) becomes $99.498 billion. Compare this nearly 100 billion dollar GNI with the 1971 GDP, when we fought out of an union with Pakistan. The GDP was only 10 billion dollar and the per capita GDP was only $130.

Eastwatch BRO, did you realize that purchasing power of fiat money (Be it dollar, TK, Rupee) decreased by numerous percents over 38 yrs? For example, I Kg rice was around 1 rupee, whereas it was around 20-22 rupees/TK by now. Subway fare in NY was around 50 cents in 71 and it was $2.25 by now. So, counting GDP by fiat/paper money isn't actually an accurate method of counting wealth rather we should look at how much of industrial output, infrastructural improvement, educational uplifting, technological boast, military might have grown over 38 yrs? W Pakistanis left us almost everything that PAK built from 60-70s. Name CTG Steel Mill, Adamji Jute Mills, CTG Dry Dock, CTG GM PLANT, KHULNA NEWS PPRINT MILL, KHULNA DOCK YARD, BUET, 3 Engineering colleges, Rajshahi Univv, Mymenshingh Agri Univv were few among all. Were we able to increase those names/figures by ten folds? How about making world class doctors, engineers, technocrates in numbers? I have extremely good understanding of our socio-economic condition and do think that without IND being reduce to a non hegemonic/imperial state, none of its neighbor countries would rise, period.

 

[EjazR]

We will increase trade with northeast India: Bangladesh minister :: Samay Live

Bangladesh has said it will increase trade and economic activities with India's northeast region and develop infrastructure at the border.
Bangladesh Commerce Minister Colonel (retired) Faruk Khan said: "We have decided to increase trade and business with the northeastern region to reduce Bangladesh's trade gap with India.


"I will ask Bangladesh planning commission to approve the Taka 116 crore ($16.8 million) project within a day or two to develop the road and other border infrastructure along Akhaurah land port with India's Tripura state," Khan told newspersons here Thursday after flagging off the first consignment of bricks from Bangladesh to northeastern India.


Bangladesh roads and highway department had submitted the proposal to the planning commission a few months back.


The Akhaurah land port, 150 km east of Dhaka and just 5 km west of Tripura capital Agartala, is one of Bangladesh's biggest trading routes with northeast India.


Khan said the Bangladesh government would take urgent steps to develop the other land ports with northeast India within six months.


Four northeastern states -- Assam, Tripura, Meghalaya and Mizoram -- share a 1,879 km border with Bangladesh.


"To increase the trade and business between Bangladesh and northeast India, my government sincerely wants rail, road, waterways and telecommunication links between the two sides," said the minister.


Bangladesh's Export Promotion Bureau (EPB) vice-chairman Mohammad Shahab Ullah said: "Bangladesh's trade gap with India has increased to $2,566.42 million in 2008-09."


India has been issuing a large number of visas to Bangladeshi businessmen.


"India issues half-a-million visas annually to Bangladeshis and this is the highest number of visas given to Bangladeshis by any country and we are also issuing multiple visas to traders and businessmen of that country," said Indian High Commissioner in Bangladesh Pinak Ranjan Chakravarty, who was also present at the function.


In 2006, 2007 and 2008, the total number of visas issued by India to Bangladeshis was respectively 472,644, 481,064 and 523,322.

 

[eastwatch]

Eastwatch BRO, did you realize that purchasing power of fiat money (Be it dollar, TK, Rupee) decreased by numerous percents over 38 yrs? For example, I Kg rice was around 1 rupee, whereas it was around 20-22 rupees/TK by now. Subway fare in NY was around 50 cents in 71 and it was $2.25 by now. So, counting GDP by fiat/paper money isn't actually an accurate method of counting wealth rather we should look at how much of industrial output, infrastructural improvement, educational uplifting, technological boast, military might have grown over 38 yrs? W Pakistanis left us almost everything that PAK built from 60-70s. Name CTG Steel Mill, Adamji Jute Mills, CTG Dry Dock, CTG GM PLANT, KHULNA NEWS PPRINT MILL, KHULNA DOCK YARD, BUET, 3 Engineering colleges, Rajshahi Univv, Mymenshingh Agri Univv were few among all. Were we able to increase those names/figures by ten folds? How about making world class doctors, engineers, technocrates in numbers? I have extremely good understanding of our socio-economic condition and do think that without IND being reduce to a non hegemonic/imperial state, none of its neighbor countries would rise, period.

Yes, you have made a good point. But, no country in the world counts their GDP or economic performance at a constant dollar of 1971. Since dollar is losing its purchasing power, so are also all the currencies of the world. Moreover, it is the goods and services a country produces that are transfered into a value in dollar or taka. In that respect, BD is certainly producing much more goods than it was producing in 1971.

The present BD GDP must be calculated in terms of the present dollar and the present exchange rate. If not done that way, all the current economic reports become surreal. It is true for all the countries of the world.

However, you are correct to point out that industrial base was already there in East Pakistan before 1971, which the then AL govt destroyed at ease. They nationalised all the industries in 1972 and put their cronies as Directors, managers, workers and labours. These cronies swallowed up all these old industries and destroyed the backbone of our economy.

Only recently, a new group of our DESI industrialists have risen and have built up the present economic muscle through hard works. After this, another group of big industrialists are coming forward who will be building major industries such as oil refineries, ship building, petrochemical complex, fertilizer factories,　steel mills etc.

There was a time when a $3billion TATA investment was something like a dream. But, today there are desi industrialists who can jointly make similar investments. Even an AL style talk-big and do-nothing administration cannot stop BD from being an economically developed country. It is only because the politicians have little leverage left in their hands now-a-days.

I think, you are aware that the BD Banks are holding Tk.20,000 crore without being able to lend. Now, if AL govt discourages investment in industries, then the money will remain idle. It will cause great impact on the entire monetary system. Bank interest rate will fall, capital will fly away to another market where there is better benefit, value of Taka will fall immediately, remittances will be down.

There could be many other bad effects, such as a few thousand crores of Taka goes to the domestic commodity market. This will encourage hoarding commodities in the warehouses. This will cause then a big price inflation. So, now in order to keep the status quo, the govt has to find ways so that the idle money is invested and jobs are created.

Sorry for the long talk, I am not an expert at anything. So, there might be many mistakes in my assessment.

 

[arihant]

There was a time when a $3billion TATA investment was something like a dream.

BBC NEWS | South Asia | Tata halts Bangladesh investment

Every country faces problems but it is matter of concern how much. Sometime, its natural problem and sometime its Political. A political problem can be solved only by electing right politician.

 

[eastwatch]

Sorry, it was a duplicate news posted by EjazR in #191. so, I have deleted it.

 

[TopCat]

BBC NEWS | South Asia | Tata halts Bangladesh investment

Every country faces problems but it is matter of concern how much. Sometime, its natural problem and sometime its Political. A political problem can be solved only by electing right politician.

Tata wanted gas for all of its projects when BD does not have enough gas to even meet current demand. Tata was given the the choice of coal but they declined.
Currently a Korean company proposed a 8 billion dollar investment to convert coal to gas and produce 5000 MW of electriciy for 50 years. I am really excited to dig into it.