Bangladesh Economy: News & Updates

[Ryuzaki]

ADB is good alternative to hegemony of IMF

 

[Nilgiri]

There is a term called capacity to absorb loan. "Bangladesh" does not have capacity. So it does not matter ADB or anyone else double or triple the loan amount. In fact this fiscal year, nearly half of development project could not use the fund allocated. But mindless will just seeing the money from anywhere without realizing what good it will be.

Plenty of absorption capacity exists in BD.

The issue is more transfer efficiency given BD institutional quality.....but even considering that, theres plenty of spare room with high returns.

It's why BD GCF has rise quite steadily to almost 30% of GDP from about 15% back when I was born.

 

[Homo Sapiens]

http://www.thedailystar.net/country/bangladesh-achieve-68pc-growth-fy17-un-report-1402501
05:11 PM, May 08, 2017 / LAST MODIFIED: 05:18 PM, May 08, 2017
Bangladesh to achieve 6.8pc growth in FY17: UN report

BSS, Dhaka


The United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) has projected 6.8 percent GDP growth for the current financial year 2016-17 (FY17), underpinned by the expected rise in farm income, a rebound workers' income and multi-year low inflation rates.

"Near-term economic growth is projected to remain high at 6.5-6.8 percent in 2017 and 2018," ESCAP said this in its flagship report titled "Economic and Social Survey of Asia and the Pacific 2017", launched today here and elsewhere of the Asia-Pacific region.

UN Resident Coordinator and United Nations Development Programme (UNDP) Resident Representative in Bangladesh Robert D Watkins, UNESCAP Economic Affairs Officer Sudip Ranjan Basu and Director General of Bangladesh Institute of Development Studies (BIDS) Dr Khan Ahmed Sayeed Murshid were present at the ceremony, among others.

Sudip Ranjan Basu delivered a powerpoint presentation by highlighting the key areas of the report especially on Bangladesh issues.

The report said consumer spending is likely to drive the economy and steady growth of Foreign Direct Investment (FDI) and merchandise exports would enable the country to maintain its current account surplus.

Despite the positive outlook, the report noted signs of heightened financial sector risks, such as rising non-performing loans and steep deterioration in returns on equity and assets. "These developments have promoted an increase in regulatory supervision," it added.


The report also highlighted further strengthening the tax-collection in order to overcome infrastructure and energy shortages aimed at sustaining the economic development.

Despite ongoing efforts to streamline tax administration and encourage compliance, the report observed the tax to-GDP ratio remaining below 10 percent.

"In this regard, recent policies to enhance the investment climate, such as creation of one-stop services, should help to energise the business sector and enhance tax collection," it added.

Sudip Ranjan Basu underscored the need for giving more attention on social inclusive and environment sustainability to sustain the economic growth.

He also recommended making more prominent fiscal policy in contributing to long-term economic growth, social protection and addressing environment digression.

 

[Homo Sapiens]

http://bdnews24.com/economy/2017/05...ic-region-by-improving-infrastructure-unescap
Bangladesh can gain maximum in Asia-Pacific region by improving infrastructure: UNESCAP


Published: 2017-05-09 00:46:25.0 BdST Updated: 2017-05-09 00:46:25.0 BdST

• 
  
  
  

Reducing infrastructure gaps can boost sustainable development in ‘countries with special needs’, says a United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) report that measures progress in 41 Asia-Pacific countries.




The group of 36 LDCs, landlocked developing countries (LLDCs) and small island developing States (SIDS) in the region are collectively known as countries with special needs.

They annually require investment equal to 10.5 percent of their GDP to provide transport, energy, information and communications technology (ICT), and water supply and sanitation to an increasingly urbanising population, which is also highly vulnerable to the impacts of climate change.

Improvements in these infrastructure sectors to bring those countries on par with the other developing Asian countries can increase the combined national income of those countries by up to 6 percent by the year 2030.

“The largest estimated gain is for Bangladesh at $35.5 billion, followed by Kazakhstan at $26.6 billion,” the report said.

The report released on Monday highlighted that geographically disadvantaged nations and the LDCs in the Asia-Pacific region can boost national incomes, educational attainment and life expectancy by reducing their sizeable physical infrastructure gaps.

The report said that investment in infrastructure development improves economic productivity and the quality of growth.

“It boosts economic growth and job creation through enhanced connectivity and production networks, promotes social development through improved access to public services and new opportunities, and enhances environmental sustainability through a low-carbon, resource-efficient and climate-resilient societal order.”

Current levels of infrastructure funding in these countries fall short of their financing needs by about 3 to 4 percent of GDP, according to the report titled ‘Asia-Pacific Countries with Special Needs Development Report 2017: Investing in infrastructure for an inclusive and sustainable future’.

It was said in the report that a 1 percent increase in a composite measurement of these four key infrastructure elements – presented as an Access to Physical Infrastructure Index (APII) - results in a 1.19 percent GDP increase in the CSN group.

“As infrastructure provides wide economic, social and environmental benefits, it constitutes an essential part of the 2030 Agenda for Sustainable Development,” ESCAP Executive Secretary Shamshad Akhtar said in the preface to the report.

“Infrastructure deficits also constrain social development and weaken environmental sustainability,” Akhtar added.

The APII evaluated the condition of these four infrastructure sectors in 41 Asia-Pacific countries over time and found uneven progress among those countries in special needs group, with LDCs comprising seven out of 10 poorest-performing countries.

It found major inadequacies in transport infrastructure and energy in the LDCs, and said while SIDS needed to strengthen ICT infrastructure, and LLDCs should prioritise investment in transport infrastructure in order to reduce trade costs.

The group will not be able to raise the required financial resources on their own, the report said and recommended a mix of options to fund infrastructure development.

Some LDCs can enhance domestic public resources, whilst other LDCs and particularly for SIDS, donor assistance will continue to be a key financing source, it added.

In contrast, resource-rich LLDCs can continue to rely on non-tax revenues from commodity exports.

The report also recommended prioritising domestic revenue mobilisation for infrastructure investment and improving the efficiency of public expenditure.

It has called for private sector involvement through private-public partnerships.

 

[Mage]

Plenty of absorption capacity exists in BD.

The issue is more transfer efficiency given BD institutional quality.....but even considering that, theres plenty of spare room with high returns.

It's why BD GCF has rise quite steadily to almost 30% of GDP from about 15% back when I was born.

Why give a sensible reply to him? You know he'll return with anti-India and Anti-AL with BS included reply.

 

[Mage]

6.8% is terrible for us.

 

[Nilgiri]

Why give a sensible reply to him? You know he'll return with anti-India and Anti-AL with BS included reply.

Just for passer's by. I have been told many do lurk...thus they will be able to judge which position is more sound for themselves. Which one is airy-fairy, which one has numbers and evidence out there.

 

[Nabil365]

Not bad because the entire world economy is doing bad.

 

[Stuttgart001]

6.8% is terrible for us.

It is quite good considering the recession of the entire world and the population of BD.

 

[idune]

Plenty of absorption capacity exists in BD.

The issue is more transfer efficiency given BD institutional quality.....but even considering that, theres plenty of spare room with high returns.

It's why BD GCF has rise quite steadily to almost 30% of GDP from about 15% back when I was born.

For education of awami cheer leaders and their indian sidekick

Unused foreign funds hit new high of $23b

Rejaul Karim Byron
The amount of unused foreign aid in the pipeline reached a new high of $22.95 billion in March as the government is slow in utilising the low-cost fund, which accounts for about 40 percent of the development budget.

A finance ministry official said foreign aid commitments rose in recent years but the absorption capacity of ministries and divisions did not improve, leaving a huge stockpile.

The current fiscal year started with $21.71 billion of foreign aid in the pipeline. Till March, development partners promised $3.81 billion, but $2.57 billion was disbursed during the period, leaving another $1.24 billion in the pipeline.

It would be satisfactory if the government can utilise $4 billion in the current fiscal year, as spending 20 percent of the opening fund in a fiscal year is reasonable, an official of the Economic Relations Division (ERD) said.

The government's target was to disburse $4.36 billion in the current fiscal year, but the amount was slashed to $3.66 billion because of the failure of the ministries to use the funds.


At a recent meeting of the National Economic Council, ministries demanded more local funds for annual development programme and refunded foreign money, a planning ministry official said. In the current fiscal year's revised ADP, the government's allocation from own funds has remained the same, but for foreign funds the amount has been cut by about 16 percent, which will decrease further at the end of the fiscal year due to low implementation.

http://www.thedailystar.net/business/unused-foreign-funds-hit-new-high-23b-1231090

 

[M.R.9]

ADB is planning to almost double its loan size to $1.8-$2 billion for Bangladesh this year as its economy !!

 

[Nilgiri]

For education of awami cheer leaders and their indian sidekick

Unused foreign funds hit new high of $23b

Rejaul Karim Byron
The amount of unused foreign aid in the pipeline reached a new high of $22.95 billion in March as the government is slow in utilising the low-cost fund, which accounts for about 40 percent of the development budget.

A finance ministry official said foreign aid commitments rose in recent years but the absorption capacity of ministries and divisions did not improve, leaving a huge stockpile.

The current fiscal year started with $21.71 billion of foreign aid in the pipeline. Till March, development partners promised $3.81 billion, but $2.57 billion was disbursed during the period, leaving another $1.24 billion in the pipeline.

It would be satisfactory if the government can utilise $4 billion in the current fiscal year, as spending 20 percent of the opening fund in a fiscal year is reasonable, an official of the Economic Relations Division (ERD) said.

The government's target was to disburse $4.36 billion in the current fiscal year, but the amount was slashed to $3.66 billion because of the failure of the ministries to use the funds.


At a recent meeting of the National Economic Council, ministries demanded more local funds for annual development programme and refunded foreign money, a planning ministry official said. In the current fiscal year's revised ADP, the government's allocation from own funds has remained the same, but for foreign funds the amount has been cut by about 16 percent, which will decrease further at the end of the fiscal year due to low implementation.

http://www.thedailystar.net/business/unused-foreign-funds-hit-new-high-23b-1231090

You understand how foreign aid "pipeline" works?

This is not total lump-sum money that just sits around idle in a bank account somewhere after being handed over in one go. Read the actual article for once in your life....and understand what a commitment (like a firm aid related MOU) is compared to deposited money.

Of course the administrative capacity in BD is lacking, thats commonly found across whole developing world...and yes its a particularly big problem in BD (and even worse under BNP and previous administrations).

Want me to post how much commitments are also in the "pipeline" for India, both from foreign and domestic sources...that are in a crawl because of administrative capacity issues?

You realise all commitments do not backlog in one single pipeline (ever checked how many govt departments there are for example?)

Also it has nothing to do with what I said:

Plenty of absorption capacity exists in BD.

but even considering that, theres plenty of spare room with high returns.

Do you especially understand the significance of the 2nd statement? Or every single investment/MOU has to be under the complete control/purview of the BD govt mechanism (i.e there is ZERO private investment flow in to BD).

Stop being such an idiot.

 

[Nilgiri]

6.8% is terrible for us.

Tried telling the same thing, but of course it wasn't taken nicely:

https://defence.pk/pdf/threads/pressure-mounts-on-bangladeshs-economy.494203/#post-9456020

Don't know when bulk of members will actually become neutral for sake of discussion instead of super defensive/sensitive at the outset.

 

[EastBengalPro]

OK UN reports are more trusted! 6.8 is good...

 

[TopCat]

Growth will be reported 7.4% yearly in next month in the budget. BD post data yearly not quarterly. So its hard for anybody to predict unless final data comes out.