Bangladesh heading for fastest economic growth in FY17

[UKBengali]

Remittance is 6% of the gdp now. So fluctuation in remittance has minor effect in gdp growth rate. Update yourself. You people never want to leave stone ages, even though there is no more stones around.

They also do not understand how investment can drive growth, so even with the 3
factors mentioned being down from last year BD
is still able to post more than 7% growth.

 

[Banglar Bir]

12:00 AM, May 15, 2017 / LAST MODIFIED: 03:24 AM, May 15, 2017
Govt claims a record 7.24pc GDP growth
WB sticks to its projection of 6.8pc this year; ADB, IMF also project below 7pc

Staff Correspondent

The government yesterday announced that the country's GDP growth would hit a record 7.24 percent in the outgoing fiscal year, while the World Bank sticks to its earlier growth projection of 6.8 percent.

Another multilateral lender, the Asian Development Bank last month predicted that Bangladesh's economy would grow 6.9 percent this fiscal year. In the same month, the International Monetary Fund made a similar projection.
Lower GDP growth forecast by the WB and other development partners is nothing new for Bangladesh. This happens almost every year.

Last year, the WB forecast that Bangladesh's economy would grow by 6.7 percent in fiscal 2015-16. But in the end, the government put the growth rate at 7.1 percent.

At a briefing on Bangladesh Development Update in the capital yesterday morning, WB officials said Bangladesh's economy would grow by 6.8 percent this fiscal year, down from 7.1 percent last year, due to sluggish export growth, falling remittance and slowdown in import of industrial raw materials.
“These three indicators are very important [for calculation of GDP growth],” said Zahid Hussain, lead economist at the WB's Dhaka office.
Except for these areas, most of the indicators were better this year than those in the previous year, according to the WB.

Zahid declined to comment on the government's provisional GDP growth estimate (7.24 percent) without going through the data compiled by Bangladesh Bureau of Statistics, a government agency.
He said it would be pointless to have a debate on whether the growth would be 7.24 percent or 6.8 percent.
“What is the benefit of making a conservative projection?” said Zahid.

Major indicators that matter in GDP calculation are: consumer spending, investment by businesses, government spending, remittance, exports and imports.
The WB said it had some valid reasons to set the GDP growth at 6.8 percent.
Bangladesh's export growth came down to only 3.9 percent in the first 10 months of the current fiscal from 9.2 percent for the same period a year ago.

Remittance, considered a strong lifeline for the country's economy for the last several years, went down 16 percent between July and April this fiscal year. This sharp fall in inflow of remittance means a drop in domestic consumption.
Import growth of industrial raw materials was only 2 percent between July and February this fiscal year, down from 4.2 percent during the same period a year ago.

According to the WB, private sector investment would increase slightly this year from last year's 22.1 percent of the GDP. It has remained almost stagnant around 22 percent over the last five years.
However, government spending, a major component of the GDP, has been growing steadily over the last few years.
Zahid said crop losses due to flash flood in haor areas last month were not included in the calculation.

Coming out of a meeting of the National Economic Council a couple of hours later, Planning Minister AHM Mustafa Kamal told reporters that the WB and other development partners always make conservative growth forecast.
“We didn't do any engineering and the methodology for calculating the GDP remains unchanged,” said the minister.
Replying to a query on declining remittance, Kamal said inflow of remittance through authorised channels has fallen, but the overall inflow didn't slide.
“No matter whichever way remittance came in, it was used for domestic consumption.”
He said the country's per capita income rose to $1,602 this fiscal year from $1,466 in the previous fiscal year

 

[Shorisrip]

I wonder how a lot of the megaprojects will affect the growth rate.

 

[Bilal9]

So - Bangladesh will have somewhat similar living standard to India and Pakistan. In fact Bangladesh level may be a bit higher. Thank God for barbed wire fences....

Meanwhile, per capita income rises to $1,602, which was $1,466 in the last fiscal year, Bangladesh Bureau of Statistics (BBS) said today.

Pakistan had per capita income of $1561 as of 2016, India had roughly similar level a month ago (Rs. 1 lakh plus/minus a few rupees).

 

[ito]

So another term for Hasina.

Congrats to Bangladeshis!

 

[CaptainJackSparrow]

So - Bangladesh will have somewhat similar living standard to India and Pakistan. In fact Bangladesh level may be a bit higher. Thank God for barbed wire fences....



Pakistan had per capita income of $1561 as of 2016, India had roughly similar level a month ago (Rs. 1 lakh plus/minus a few rupees).

Bangladesh can do much better. BD has a lot of potential. It only need to keep Islamic fundamentalism in check and preserve its secular constitution and ethos.

A prosperous BD means less worry for India of spillover effects.

 

[ito]

Bangladesh can do much better. Has a lot of potential. It only need to keep Islamic fundamentalism in check and preserve its secular constitution and ethos.

To check Islamic fundamentalism...Hasina is the only answer.

 

[fitpOsitive]

Now its ok to lend some money from IMF for more growth.

 

[CaptainJackSparrow]

To check Islamic fundamentalism...Hasina is the only answer.

One person can never solve such complex problems. Hasinas will come and go. People have to decide what kinda future they want.

It's up to the people of BD whether they wanna imitate the rest of the Muslim world or create a distinctly progressive 21st century society.

 

[ito]

One person can never solve such complex problems. Hasinas will come and go. People have to decide what kinda future they want.

What alternative do you have? Kalida Jia? As of now Hasina is light years better that Jia. And Hasina is good for India too.

 

[Logicaldude]

Congrats BD.

All petty bickering on the forum aside, BDs policy of minding own business, cooperation with all neighbors, ruthless dealing with religious nut jobs and taking ownership of own problems is a role model for the west wing.

 

[Homo Sapiens]

Pakistan had per capita income of $1561 as of 2016, India had roughly similar level a month ago (Rs. 1 lakh plus/minus a few rupees).

My guess BD's per capita income have reached within 2% margin of Pakistan in 2017 and likely to overtake in the next year.In 1970, just before the breakup,West Pakistan's per capita income was 61 percent higher than East Pakistan,which was achieved due to severe exploitation and neglect of East.Pakistan maintained this margin of gap against BD up to 2010.Then we started to narrow the gap.Now it is about to overtake.Pakistan robbed us 40 years(1950-1990) worth of development.And they preached,this region's backwardness is due to flooding and cyclone and west Pakistan will prosper leaps and bounds if it shed East Pakistan.That was the reason for Bhutto-Yahyia gong's hardened attitude and subsequent calculated assault.

But you can't deny the historic reality.Up to the British colonial period,Bengal was the most prosperous region of sub continent.Our ample agricultural bounty and Maslin fabric industry was world renowned.This region was a vibrant center of trade and commerce. Unfortunately that prosperity also made it prime target of East India company for power grab and looting.I believe,if history is any guide,than regaining that status is only matter of time.But this time.it will be the industry instead of agriculture.But we need to be careful of jamati scum's attempt to turn our country into another ideological Pakistan and destroy every achievement and opportunity.

 

[bluesky]

This is another awami cheer leading band attempt to spread awami propaganda in face of real picture of economy. 3 key growth engines of economy, all declining badly BUT awami league and its echo chamber keep cooking up growth figure.

Export earnings failed to hit target in July-April
https://defence.pk/pdf/threads/export-earnings-failed-to-hit-target-in-july-april.495394/

Severe damage to boro rice harvest because of floods and storm

Decline in remittances hits the economy badly
http://www.theindependentbd.com/arcprint/details/71880/2016-12-10

Dear @idune, thank you for accepting the reality that even with the fall of three sectors you have listed, BD economy is growing @ 7.24%. Without the falls, it could have grown by @9%.

 

[idune]

Dear @idune, thank you for accepting the reality that even with the fall of three sectors you have listed, BD economy is growing @ 7.24%. Without the falls, it could have grown by @9%.

Awami propaganda echo chamber can not overpower dismal picture of Bangladesh decline. That is the reality.

 

[Banglar Bir]

Dear @idune, thank you for accepting the reality that even with the fall of three sectors you have listed, BD economy is growing @ 7.24%. Without the falls, it could have grown by @9%.

The government yesterday announced that the country's GDP growth would hit a record 7.24 percent in the outgoing fiscal year, while the World Bank sticks to its earlier growth projection of 6.8 percent.