Bangladesh Economy: News & Updates

[LongLiveBritian]

ABD forecasts 6.3 per growth in Bangladesh for 2011

Dhaka - The Asian Development Bank (ADB) on Tuesday forecast growth of 6.3 per cent for Bangladesh
in the current fiscal year, provided the South Asian country ensures political stability and smooth energy supply.

'To raise the growth prospects, power and gas shortages need to be eliminated and reforms accelerated. More fundamentally, political stability will be critical to boosting growth,' M Zahid Hossain, a senior specialist of ADB's Dhaka office, said while releasing the Asian Development Outlook 2010.

This growth projection is lower than of the government's own estimate of 6.7 per cent.

According to the ADB report, Bangladesh's economy would expand should there be strong domestic demand, availability of credit to the private sector and increase in public investments including stimulus packages.

The report put five conditions - containing inflation, political stability, progress in reforms, improvement in power supply and favourable weather - for sustaining a healthy gross domestic product (GDP) growth level.

Zahid Hossain expressed the confidence that Bangladesh's economy, which is currently growing at around 6 per cent, has the potential to achieve 8 per cent growth to accelerate the poverty reduction process.

After peaking at 6.7 per cent in the 2005-06 fiscal year, economic growth declined to 6.4 per cent in 2006-07, 6.2 per cent in 2007-08, 5.9 per cent in 2008-09 and 5.7 per cent in 2009-2010.

ABD forecasts 6.3 per growth in Bangladesh for 2011 - Monsters and Critics

 

[eastwatch]

The conomy is peaking up a bit, at last. Electricity shortage and economic decline of the western world may be cited as twin reasons for our economy lacking steam. However, the timing of our shortage of power has coincided with that of economic recession world over. When the new power plants are built, there will be many more industries in the country. By this time, the world economy will also start rising.

This means a further raise of growth after a few more years. However, I must say it is time BD puts some of its eggs away from the textile basket. Unless it develops other industries, BD may suddenly fall down when the currency gets stronger, labour costs become higher and some other countries also start selling cheap textiles. BD will lose much of its market in a competition like that. In order to make a continuous progress, it is imperative that BD strives to build industries that produce more value added goods.

 

[eastwatch]

The New Nation - Internet Edition

ADB FORECASTS 8% GROWTH IN 3 YEARS
BSS, Dhaka

Forecasting a stable 6.3 percent growth for 2011, Asian Development Bank (ADB) on Tuesday said Bangladesh economy would grow by at least 8 percent in three to four years.

"The prospect for Bangladesh achieving 8 percent growth in three to four years is high," said ADB Senior Country Specialist Md Zahid Hossain.

Speaking on the launching of the bank's flagship publication, "Asian Development Outlook 2010 Update," he observed that all the major indicators are in the positive territory, raising the confidence of attaining higher GDP.

ADB Country Director Thevakumar Kandiah also spoke on the occasion when he recommended addressing issues of power and transport sectors, increasing capacity of ports and facilitating more private investment to tape the growth prospect.

He emphasized Public-Private Partnership (PPP) and suggested quicker implementation of appropriate legal and regulatory framework for making PPP projects operational.

The country director observed that the visits of Prime Minister Sheikh Hasina to India and China opened an immense opportunity for developing regional connectivity, trade and business.

He said there has been concrete development in regional relations since the visit of Sheikh Hasina.

He said the communication sector would have significant development on complementation of the projects under US $1 billion loan from India.

"Bangladesh will also get 500 megawatts of electricity from India after connecting their grids," he said.

Zahid Hossain advised for efforts to increase exports and domestic demands and develop infrastructure including power and gas supply situation to attain 8 percent growth, which is a prerequisite for cutting poverty level from the existing 40 to 15 percent by 2015.

Besides the growth prospect, the ADB was also confident on Bangladesh in managing inflation, which is considered as a major concern for economic stability.

The update forecasts 7.3 percent inflation for next year, which is lower than the bank's earlier projection of 7.8 percent.

Zahid Hossain said two influential components of the Inflation-oil and food prices-are expected to remain stable next year when Bangladesh could maintain less inflationary growth.

The bank projects 4.1 percent growth in agriculture, 7.5 percent in industry and 6.7 percent in service sector.

Referring to the recent increase in tax collection, it expects the revenue earning would increase further in 2011 aided by the increase of tax base, strengthening tax enforcement and simplifying tax payment system.

The update forecasts healthy growth of 8.2 in 2010 in developing countries, well above 5.4 percent recorded in 2009 and also above ADB's earlier forecast of 7.5 percent.

It said the region's two giants continue to perform strongly, lifting up the growth of the entire region.

The forecast for China, where double-digit growth in the first half of 2010 is expected to moderate somewhat in the second half, remains elevated at 9.6 percent. The forecast for India slightly upgraded to 8.5 from 8.2 percent in April.

Strong export recovery, robust private demand, and the sustained effects of stimulus policies allowed the region to experience solid growth in the first half of 2010, it said.

 

[TopCat]

ABD forecasts 6.3 per growth in Bangladesh for 2011

Dhaka - The Asian Development Bank (ADB) on Tuesday forecast growth of 6.3 per cent for Bangladesh
in the current fiscal year, provided the South Asian country ensures political stability and smooth energy supply.

'To raise the growth prospects, power and gas shortages need to be eliminated and reforms accelerated. More fundamentally, political stability will be critical to boosting growth,' M Zahid Hossain, a senior specialist of ADB's Dhaka office, said while releasing the Asian Development Outlook 2010.

This growth projection is lower than of the government's own estimate of 6.7 per cent.

According to the ADB report, Bangladesh's economy would expand should there be strong domestic demand, availability of credit to the private sector and increase in public investments including stimulus packages.

The report put five conditions - containing inflation, political stability, progress in reforms, improvement in power supply and favourable weather - for sustaining a healthy gross domestic product (GDP) growth level.

Zahid Hossain expressed the confidence that Bangladesh's economy, which is currently growing at around 6 per cent, has the potential to achieve 8 per cent growth to accelerate the poverty reduction process.

After peaking at 6.7 per cent in the 2005-06 fiscal year, economic growth declined to 6.4 per cent in 2006-07, 6.2 per cent in 2007-08, 5.9 per cent in 2008-09 and 5.7 per cent in 2009-2010.

ABD forecasts 6.3 per growth in Bangladesh for 2011 - Monsters and Critics

I think growth will be more than 7% this year. Export grew 28% for the first two months. Also all the power plant in the pipeline will substantially contribute to the GDP.

 

[akash57]

Govt allots Tk 420cr to generate employment for ultra poor

The government has allocated Taka 420 crore to launch the first-phase 40-day employment generation programme (EGP) for 6.30-lakh ultra poor in the country including Rangpur Division from mid- October next, officials said.

The Ministry of Food and Disaster Management has allocated the huge amount under the massive social safety networks to provide jobs to 6,30,000 ultra poor people for 40-days with Taka 150 per day per labour during the peak hour of the seasonal lean period. The EGP will start tentatively from October 10-14 next and continue till mid-December and each of the selected card-holder 6.30 lakh labourers will earn a total of Taka 6,000 as wages for their 40-day works during the two-month period. Under the EGP, Taka 70,80,12,000 has been allocated to create job opportunities for 1,18,002 beneficiaries including men and women of 18-60 years age group in all eight districts of Rangpur division during this seasonal lean period 'monga', the sources said. The poorer section people, including distressed women, jobless farm and day-labourers, will get jobs under the first- phase programme in all 58 upazilas of eight districts in the poverty-prone Rangpur division as elsewhere in the country.

The administrations with the assistance of all concerned including the local public representatives have already started the process of preparing lists of the beneficiary ultra poor in a transparent manner for providing cards of the EGP to them.

The government will launch the first-phase of the two- phase 100-day EGP from mid-October to assist the poorer section people and jobless farm-and day-labourers during the seasonal lean period to assist them in earning wages and averting poverty, officials said. Each of the beneficiaries will get Taka 150 daily wage for five days in a week and 20 in a month and each of them have the opportunity to earn a total of Taka 6,000 after completion of his or her 40-day work.

District Relief and Rehabilitation Officer (DRRO) of Rangpur Mokhlesur Rahman told BSS that the programme has been planned for assisting the poorer section in combating seasonal job crisis during the lean period this year. The work under the EGP will include cleaning of weeds, preparing compost fertilizer heaps, renovation, repairing and earth-filling works for bridges, culverts, roads, water bodies, ponds, canals, educational and religious institutions etc. Under the first phase EGP, Taka 14,74,68,000 has been allocated for 24,578 beneficiaries in Rangpur, Taka 12,00,96,000 for 20,016 in Kurigram, Taka 4,46,40,000 for 7,440 in Lalmonirhat, Taka 8,82,12,000 for 14,702 in Gaibandha and Taka 11,08,08,000 for 18,468 beneficiaries in Nilphamari. Besides, Taka 10,06,92,000 has been allocated for 16,782 beneficiaries in Dinajpur, Taka 5,47,44,000 for 9,124 beneficiaries in Thakurgaon and Taka 4,13,52,000 for 6,892 beneficiaries in Panchagarh districts under the first-phase EGP this season, officials aid.

While talking to BSS, DC of Rangpur BM Enamul Haque informed that the programme will assist the poorer people at the peak hour of the seasonal lean period, which is the softest one this year in the area.

The New Nation - Internet Edition

 

[LongLiveBritian]

Govt allots Tk 420cr to generate employment for ultra poor

The government has allocated Taka 420 crore to launch the first-phase 40-day employment generation programme (EGP) for 6.30-lakh ultra poor in the country including Rangpur Division from mid- October next, officials said.

The Ministry of Food and Disaster Management has allocated the huge amount under the massive social safety networks to provide jobs to 6,30,000 ultra poor people for 40-days with Taka 150 per day per labour during the peak hour of the seasonal lean period. The EGP will start tentatively from October 10-14 next and continue till mid-December and each of the selected card-holder 6.30 lakh labourers will earn a total of Taka 6,000 as wages for their 40-day works during the two-month period. Under the EGP, Taka 70,80,12,000 has been allocated to create job opportunities for 1,18,002 beneficiaries including men and women of 18-60 years age group in all eight districts of Rangpur division during this seasonal lean period 'monga', the sources said. The poorer section people, including distressed women, jobless farm and day-labourers, will get jobs under the first- phase programme in all 58 upazilas of eight districts in the poverty-prone Rangpur division as elsewhere in the country.

The administrations with the assistance of all concerned including the local public representatives have already started the process of preparing lists of the beneficiary ultra poor in a transparent manner for providing cards of the EGP to them.

The government will launch the first-phase of the two- phase 100-day EGP from mid-October to assist the poorer section people and jobless farm-and day-labourers during the seasonal lean period to assist them in earning wages and averting poverty, officials said. Each of the beneficiaries will get Taka 150 daily wage for five days in a week and 20 in a month and each of them have the opportunity to earn a total of Taka 6,000 after completion of his or her 40-day work.

District Relief and Rehabilitation Officer (DRRO) of Rangpur Mokhlesur Rahman told BSS that the programme has been planned for assisting the poorer section in combating seasonal job crisis during the lean period this year. The work under the EGP will include cleaning of weeds, preparing compost fertilizer heaps, renovation, repairing and earth-filling works for bridges, culverts, roads, water bodies, ponds, canals, educational and religious institutions etc. Under the first phase EGP, Taka 14,74,68,000 has been allocated for 24,578 beneficiaries in Rangpur, Taka 12,00,96,000 for 20,016 in Kurigram, Taka 4,46,40,000 for 7,440 in Lalmonirhat, Taka 8,82,12,000 for 14,702 in Gaibandha and Taka 11,08,08,000 for 18,468 beneficiaries in Nilphamari. Besides, Taka 10,06,92,000 has been allocated for 16,782 beneficiaries in Dinajpur, Taka 5,47,44,000 for 9,124 beneficiaries in Thakurgaon and Taka 4,13,52,000 for 6,892 beneficiaries in Panchagarh districts under the first-phase EGP this season, officials aid.

While talking to BSS, DC of Rangpur BM Enamul Haque informed that the programme will assist the poorer people at the peak hour of the seasonal lean period, which is the softest one this year in the area.

The New Nation - Internet Edition

This news is very uplifting, poverty is the number one demand to be eliminated all over the world, seems the goverment is doing really good for bangladesh.

 

[akash57]

Dell to make long-term investment in Bangladesh

Dell Incorporation, one of the leading technology companies in the world, thinks that Bangladesh is one of the key growth economies in Asia, where Dell would like to make long-term investment, reports BSS.

Addressing a 'Meet the Press' programme at a city hotel Wednesday, Managing Director of Dell South Asia Varinderjit Singh said, "We see a tremendous opportunity in the investments that the government and the private sectors are making in infrastructure."

He said, today IT infrastructure is as important as roads and power generation plants and can help improve GDP by a greater factor. "We want to help Bangladesh on this road, and where others see challenges, I see opportunities," he added.

Singh also said that Dell's commitment is borne out by the fact that in the last few months it has hired a number of resources in the country to focus on the business.

Dell to make long-term investment in Bangladesh

 

[eastwatch]

JP Morgan's SVP calls on Muhith

David A Weisbrod, the senior vice president (SVP) of JP Morgan, a leading financial institution of the USA, called on Finance Minister AMA Muhith at the Bangladesh Permanent Mission in New York recently, reports UNB.

The meeting between the finance minister and the SVP of JP Morgan was very significant, as the institution will launch its branch in Bangladesh this month, according to a message received in Dhaka from New York.

It is expected that foreign investment would increase in Bangladesh if the JP Morgan branch is opened.

During the meeting, the SVP of JP Morgan apprised Muhith of the progress in launching a branch in Bangladesh. The finance minister assured Weisbrod of extending all-out cooperation to the future activities of JP Morgan in Bangladesh.

Weisbrod initiated the move to open a JP Morgan branch in Bangladesh after a meeting with Prime Minister Sheikh Hasina during the 64th United Nations General Assembly in 2009.

In 1971, Weisbrod, AMA Muhith and Dr Muhammad Yunus worked together at the 'Bangladesh Information Centre', which was set up in Washington to have support of the world community in favour of the Liberation War of Bangladesh.

 

[TopCat]

JP Morgan's SVP calls on Muhith

David A Weisbrod, the senior vice president (SVP) of JP Morgan, a leading financial institution of the USA, called on Finance Minister AMA Muhith at the Bangladesh Permanent Mission in New York recently, reports UNB.

The meeting between the finance minister and the SVP of JP Morgan was very significant, as the institution will launch its branch in Bangladesh this month, according to a message received in Dhaka from New York.

It is expected that foreign investment would increase in Bangladesh if the JP Morgan branch is opened.

During the meeting, the SVP of JP Morgan apprised Muhith of the progress in launching a branch in Bangladesh. The finance minister assured Weisbrod of extending all-out cooperation to the future activities of JP Morgan in Bangladesh.

Weisbrod initiated the move to open a JP Morgan branch in Bangladesh after a meeting with Prime Minister Sheikh Hasina during the 64th United Nations General Assembly in 2009.

In 1971, Weisbrod, AMA Muhith and Dr Muhammad Yunus worked together at the 'Bangladesh Information Centre', which was set up in Washington to have support of the world community in favour of the Liberation War of Bangladesh.

Huh.. get ready for huge foreign portfolio investment in stock market..
I calculated yesterday, we need at least 5 billion dollar foreign investment per year to get to 8% growth rate if % of domestic investment keeps steady.

 

[eastwatch]

Huh.. get ready for huge foreign portfolio investment in stock market..
I calculated yesterday, we need at least 5 billion dollar foreign investment per year to get to 8% growth rate if % of domestic investment keeps steady.

I do not know for sure why I am pessimistic about JP Morgan and the likes. Foreigners will be purchasing Bangladeshi stocks through these institutions. But, the buyers are not investors in manufacturing plants. They are buyers of stocks only. They go to to any rising economy to earn their dollar. Their money does not stay longer, and it wipes away the benefits of local common people.

In today's open world there is no way a sovereign country can close stock market gambling centers prescribed by the Jewish financiers and followed by all the govts of the world. It was temporarily stopped probably only one time by Dr. Mahathir of Malaysia.

These stock gambler KASAI guys had almost destroyed the economic gains of entire ASEAN countries. They have also destroyed the market once in India. These institutions and their clients usually target an economically rising country or a region. They have been targeting now Vietnam and Bangladesh since the last few years. They expect to bring in the Hedge Funds to buy stocks and to make profits for the owners, and not for the country where these funds buy stocks.

They will come at an opportune time and start buying our stocks. This will create an euphoria among the local population, who will start buying the stocks with whatever money they have. The locals will ultimately burn their hands when the foreign clients silently start selling their stocks. Deshi people without knowing anything about stock market will keep on buying them expecting the values to reach the sky.

In the next phase, when the Deshis want to sell their stocks to make a profit, they will find no buyers to take, and there will be a heavy crash. BD will again be as poor as it was when the foreign jet-sitting stock buyers will get away with our hard-earned money. Yes, every 5 or 10 years they come back to the same country. Usually, they move around the world market seeking profits in different countries. This is how US gets back all its dollars it spends purchasing foreign goods. The money ultimately goes back to the country that prints the dollar.

Hedge Fund Jews will be active probably after a few years when our foreign currency reserves reach $20 to $30 billion. It will be enough dollar reserves for them to come. They will be coming to make a profit and take the money out in dollars. I would like instead direct foreign investments in the manufacturing and service industries, and would detaste the introduction of hedge funds in Bangladesh.

 

[Skies]

Huh.. get ready for huge foreign portfolio investment in stock market..
I calculated yesterday, we need at least 5 billion dollar foreign investment per year to get to 8% growth rate if % of domestic investment keeps steady.

Which approach you used to calculate BD's GDP, expenditure approach or the income approach? I know two formulas from my book.

1.

Expenditure approach:

GDP = private consumption (C) + gross investment (Inv) + government spending (G)+ {exports (eX) − imports (i)}

GDP = C + Inv + G + (eX - i)

2.

Income approach:

GDP = compensation of employees (COE) + gross operating surplus (GOS) + gross mixed income (GMI) + {taxes(T) - subsidies(S)}

GDP = COE + GOS + GMI + (T - S)



Where you got the values of these variables?

 

[Skies]

I do not know for sure why I am pessimistic about JP Morgan and the likes. Foreigners will be purchasing Bangladeshi stocks through these institutions. But, the buyers are not investors in manufacturing plants. They are buyers of stocks only. They go to to any rising economy to earn their dollar. Their money does not stay longer, and it wipes away the benefits of local common people.

Could you explain more that what happens if the buyers are not the investors?

J.P. Morgan is a leader in financial services, offering solutions to clients in more than 100 countries with one of the most comprehensive global product platforms available. We have been helping our clients to do business and manage their wealth for more than 200 years. Our business has been built upon our core principle of putting our clients' interests first.



J.P. Morgan is part of JPMorgan Chase & Co. (NYSE: JPM), a global financial services firm with assets of $2.0 trillion.

http://www.jpmorgan.com/pages/jpmorgan/about

 

[TopCat]

Could you explain more that what happens if the buyers are not the investors?

We have a lock in place for one year for any foreign portfolio investment since 1996 crash. So its almost impossible to do gambling in stock market anymore by the foreign investor. Only the long term investor will aproach in Dhaka stock market now.

 

[Skies]

^ I don't know why most of the people are interested in share business nowadays around me. Are they thinking right about doing share business - I'm confused?

 

[TopCat]

Which approach you used to calculate BD's GDP, expenditure approach or the income approach? I know two formulas from my book.

1.

Expenditure approach:

GDP = private consumption (C) + gross investment (Inv) + government spending (G)+ {exports (eX) − imports (i)}

GDP = C + Inv + G + (eX - i)

2.

Income approach:

GDP = compensation of employees (COE) + gross operating surplus (GOS) + gross mixed income (GMI) + {taxes(T) - subsidies(S)}

GDP = COE + GOS + GMI + (T - S)



Where you got the values of these variables?

Well in both the aproach the GDP will be same. Dont they?
Regarding growth rate there is a well eshtablished assumption that you need some percentage of GDP to be invested to gain the certain percentage of growth rate.

For instance we had a growth rate 6% last year and we invested 24% of our GDP. So if you want to go above 6% then you need to invest more of your percentage of GDP. We assume that we need at least 28-30% investment to get the GDP growth rate to 8%.
Now this year our projected GDP is 100 bln dollar. So we need at least 28-30 billion dollar invested to get 8% growth of the GDP. But we only can invest up to 24 bln dollar if the last year trend continues. So I said the gap can be mitigated by FDI or the extra savings we have in our domestic market. Our current savings is 29 bln dollar every year. So it can also be achieved if the people were enocouraged to invest instead of putting money in the back as FDR.