Bangladesh GDP to Grow at 6.8% this Fiscal

[eastwatch]

GDP growth may hit 6.8pc: BBS

GDP growth may hit 6.8pc: BBS
New budget outlay to the tune of Tk 2.23 trillion
Shakhawat Hossain

The growth rate of gross domestic product in the current fiscal year may hit 6.8 per cent, slightly higher than the previous best of 6.66 per cent the county achieved a couple of years ago, officials said on Saturday.

They said the government would project the next fiscal year’s GDP growth at 7.5 per cent with a budget outlay of around Tk 2,23,000 crore.

The provisional estimate of GDP in FY 2012-13 made by the Bangladesh Bureau of Statistics is 0.4 percentage points lower than the projected 7.2 per cent, the officials said. Finance minister AMA Muhith early this month told parliament that the projected GDP growth of 7.2 per cent would be difficult to achieve because of ‘uncertainty in global economy and disasters’. But, referring to the progress in rural infrastructure, agriculture in particular, he expected that the growth would near 7 per cent in the current fiscal.

Multilateral lenders, including the International Monetary Fund, World Bank and Asian Development Bank, projected the GDP growth rate in the 5.5 to 6 per cent range in the current fiscal. They projected much lower than expected growth rates considering the weak domestic demand amid a sluggish local and foreign investment coupled with an energy shortage.

Bangladesh Bank in December predicted the country’s economic growth at 6.2 per cent.
Policy Research Institute executive director Ahsan H Mansur said the international agencies put the economic forecasts at a lower level. He said major economic indicators were positive and indicated a better growth prospect.

Bangladesh Institute of Development Studies director general Mustafa K Mujeri said the country’s growth prospect depended on revenue earning, agriculture and industrial production, remittance, and export earnings.

Revenue growth in the first six months, July-December 2012, was recorded at 15.9 per cent over the same period of the last fiscal. The remittance inflow in the period registered a 22 per cent growth.
The foreign currency reserve by now has swollen to $14 billion.
Meanwhile, the finance ministry has outlined the next fiscal year’s budget, the last one of the present government, which might earmark Tk 65,000 to 67,000 crore for the Annual Development Programme.

The new budget will be announced in June. But the Awami League-led ruling alliance will get the chance to implement the budget for six months only, as its tenure is scheduled to end in January 2014.

 

[karan21]

I believe Bd should over take Pakistan in 5-8 yrs to becomes the 2nd major economy of SA. Good stuff

 

[OrionHunter]

Good show!

This in spite of the Mullah brigade of the Jamaatis who are against economic reform saying it is anti Islam!

 

[Echo_419]

Good job BDeshis

 

[eastwatch]

I believe Bd should over take Pakistan in 5-8 yrs to becomes the 2nd major economy of SA. Good stuff

When counted on the base year of 2005 Bd GDP is certainly more than $135b. If the economy increases in average by 6.3% per year, it will be double at $270b only after 12 yrs. However, if more power plants are built sometime during this period, there will be new production plants for consumer goods. So, it is not that impossible for BD to overtake the GDP of Pakistan which is growing somewhere between 2 to 3% per year.

 

[karan21]

When counted on the base year of 2005 Bd GDP is certainly more than $135b. If the economy increases in average by 6.3% per year, it will be double at $270b only after 12 yrs. However, if more power plants are built sometime during this period, there will be new production plants for consumer goods. So, it is not that impossible for BD to overtake the GDP of Pakistan which is growing somewhere between 2 to 3% per year.

True, but I will be happy if BD comes up and challenges Pak for the 2nd spot in SA. This is not because I don't want to see Pakistani grow, but because its time to for nations to start competing for growth and not with weapons. BD should give tough challenge to both India and Pak as it is also a low cost production house. This is good for the region. Bd has already takes a big share of Indian garment industry and is not competitive production house.

 

[eastwatch]

True, but I will be happy if BD comes up and challenges Pak for the 2nd spot in SA. This is not because I don't want to see Pakistani grow, but because its time to for nations to start competing for growth and not with weapons. BD should give tough challenge to both India and Pak as it is also a low cost production house. This is good for the region. Bd has already takes a big share of Indian garment industry and is not competitive production house.

Yes, you are right about competition and economic rivalry. However, the south asian counries need also a kind of mutal cooperation. Competition can be accomplished by allowing the free flow of goods, knowledge and technology. But, this is not happening to these countries, and mutual cooperation is also almost completely absent. In realit, mutual cooperation has been taken oer by mutual distrust. It is all because of bad politics.

BD needs at least its electricity shortage problem to be resolved. Once there are an ample supply of electricity, the private companies will keep on building new factories, employment will rise and consumer market will grow. A double digit growth is not impossible after, say, five years from now only if more electricity is available in the country.

Whatever it may be BD standad of living is much higher now comparing to what it was before 1971 war. The country is on right track except its domestic politics. It is not far away when BD will become the 2nd largest economy after India. It is already showing the signs of further growth and achievements.

 

[idune]

When entire economy is reeling under depression, 6.8% GDP growth - only in Awami League fantasy world and for Awami League propaganda subscribers.

 

[Matrixx]

That's impressive....but some BDeshi mentality is questioanble

 

[danger007]

High growth rate is very possible to small economies.... later should maintain constant growth...

 

[Ayush]

more than india..

more than india..

 

[farhan_9909]

I am very happy for bangladesh

i just hope next year growth is close to 8%...if the trend is made continue for the next 1 decade..Bangladesh probably will be a new country within decade

 

[arp2041]

When counted on the base year of 2005 Bd GDP is certainly more than $135b. If the economy increases in average by 6.3% per year, it will be double at $270b only after 12 yrs. However, if more power plants are built sometime during this period, there will be new production plants for consumer goods. So, it is not that impossible for BD to overtake the GDP of Pakistan which is growing somewhere between 2 to 3% per year.

Economics 101: The GDP list which is published by the IMF is that of Nominal GDP or GDP at current prices, that means cost of all the production within a country in current prices of present year, it has nothing to do with what BASE year you select (you can make it 2050 if you want), so as per IMF, the current nominal GDP of BD is $118 billion.

The thing you are talking about is GDP at Constant prices.

Gross domestic product (GDP) at current prices is GDP at prices of the current reporting period. Also known as nominal GDP.

http://stats.oecd.org/glossary/detail.asp?ID=1165

 

[UKBengali]

When entire economy is reeling under depression, 6.8% GDP growth - only in Awami League fantasy world and for Awami League propaganda subscribers.

Now, now, please let us not put a downer on good news just for the sake of who the ruling party is.

6.8% is possible as export growth is strong and seems like agriculture will also put in a strong showing.

Of course, zero credit should be given to this useless Awami League regime.

 

[king of pop]

any one know why Srinivas and kam83 are banned??? they our good friends.