Bangladesh heading for fastest economic growth in FY17

[idune]

Let us look at hard facts now.

The 7th National Pay Scale as set in 2009 and the 8th National Pay Scale was set in 2015.
In 6 years, the salary of government employees doubled. Inflation over the 6 years was 58%.
That means in real terms pay increased by 40% - if that is not proof of a rapidly growing economy then nothing
will convince you.

That is bricklane grocery store talk utterly lack any economic logic.Pay scale increase is awami regime initiative to hush govt employees because it is an non elected and illegal regime. NOT anything to do with real economic facts on the ground. You are not qualified to argue economic matter, that much is clear.

 

[UKBengali]

That is bricklane grocery store talk utterly lack any economic logic.Pay scale increase is awami regime initiative to hush govt employees because it is an non elected and illegal regime. NOT anything to do with real economic facts on the ground. You are not qualified to argue economic matter, that much is clear.

How can the government spend billions of US dollars bribing government employees if the economy is so bad then?
Debt is not going up at all and so it must be coming from increased tax revenues right?

 

[bd_4_ever]

Kirey bhai, ek kothai tarey Hizra banai dila?

You call a kettle a kettle.

 

[bluesky]

Business defaults on loan on such massive scale happens when economy is in trouble not in good time. Looks like awami cheer leading clowns still thinks screaming lie will mask their liar credential. Hating awami league and its anti Bangladesh and destructive act is not against Bangladesh but for Bangladesh. It futile for indian awami league dalas to hide behind "Bangladeshi" identity.

looks like no one listened to "fastest economic" growth lie from awami league cheer leading echo chamber and clowns. Market went down taking real economic danger into account.

Actually, the business defaults occur all the time even in the well-developed economies like Japan, EU and USA. Please refer to the news below (May 2017) about a few cases of defaults in the USA, your country of residence. Do you think, the USA economy will ever evaporate into nothing? In reality, defaults are more in the developing countries without a strong backbone, where people borrow money with the expectation of a good business. But, they fail because of poor market and management. Some of the borrowers spend the money on something else. @bluesky

Small Business Defaults in Ohio Up in March
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PRESS RELEASE UPDATED: MAY 10, 2017
Chicago, IL, May 10, 2017 (Newswire.com) - PayNet, the premier provider of credit ratings on small businesses, announces that in March 2017 overall defaults increased within Ohio’s small businesses. Of the 18 major industries, defaults worsened in 12 and improved in 6 in the state compared to last month.

In spite of a 12 basis point increase from February, Ohio's 1.55% PayNet Small Business Default Index (SBDFI) was still 32 basis points under the national SBDFI level of 1.87%. Year-over-year, the national SBDFI increased 25 basis points, while Ohio's SBDFI rose 23.

Transportation and Warehousing (3.22%); Retail Trade (2.53%); and Mining, Quarrying, and Oil and Gas Extraction (2.29%) recorded the worst default rates of all industries in Ohio. Nationally, Transportation and Warehousing had a default rate of 4.49%, with a difference of +1.24% compared to the prior year variance of +1.21% in Ohio.

Registering at 100.9, the PayNet Small Business Lending Index (SBLI) for Ohio improved 0.6% from the previous month's state level and was 2.6% higher than this month's national SBLI level of 98.3. Year-over-year, business investment deteriorated 4.0%, reducing future growth potential.

"Time will tell how these conditions will affect Ohio's economy going forward," says William Phelan, president of PayNet.

 

[idune]

awami league orchestrated fastest growing Bangladesh economic disaster is spreading through broader economy and banking systems.

SoCBs' provision shortfall widens on higher NPLs

Public banks are getting into some difficulty in lending as their overall shortfall in provision against both classified and unclassified loans increased over 6.0 per cent in the first quarter (Q1) of this year.

According to the central bank's latest statistics, the amount of provisioning shortfalls of three out of the six state-owned commercial banks (SoCBs) rose to Tk 64.73 billion during the January-March period of the current calendar year from Tk 60.81 billion in the preceding quarter.

Talking to the FE, a senior official of the Bangladesh Bank (BB) said the provision shortfall of SoCBs widened during the period under review mainly owing to higher growth in their non-performing loans (NPLs).

http://www.thefinancialexpress-bd.c...Bs'-provision-shortfall-widens-on-higher-NPLs

 

[nang2]

Bravo!

 

[Banglar Bir]

GDP GROWTH
Debate over growth rate may shift focus from real issue

Sayed Kamaluddin

The rate of the country’s GDP (gross domestic product) growth has remained a debating point for long and this year is no exception. The government and the World Bank’s Dhaka office have projected two different growth rates (7.24 and 6.8 percent respectively) but the good news is that the difference is very marginal (0.44 percentage point) and both figures are good by global standards.
Planning Minister AHM Mustafa Kamal earlier last week announced at the end of the National Economic Council (NEC) meeting that the country’s GDP growth during the FY 2016-17 has been estimated to have grown at 7.24 percent and the next year (FY 2017-18) is projected to grow by 7.4 percent. “Our ultimate goal is to cross the 8 percent mark,” the minister added.

The growth trajectory
Projecting an optimistic economic growth trajectory, the planning minister pointed out that Bangladesh is now one of the fastest growing economies in the world; and in fact, “we are just behind India in terms of economic growth.”
According to details of the provisional estimates released by the Bangladesh Bureau of Statistics (BBS), the agriculture sector grew during FY2016-17 by 3.4 percent compared to 2.79 percent last year. The planning minister added that this estimate has taken into consideration the loss of 600,000 tons rice in the flood in haor areas.
Likewise, the services sector grew 6.5 percent, (6.25 percent during FY2015-16) while industrial output growth slowed to 10.5 percent against 11.09 percent the year before. BBS estimates further added that small industries grew faster than the large and medium one in the current fiscal and indicated a slowdown in export growth.
In the services sector, wholesale retail trade, real estate, restaurant and transport sectors performed well but financial sector slowed down. However, the higher GDP growth pushed the per capita income to $1,602 during FY2016-17, an increase of 9.35 percent year-on-year.

The World Bank estimate
As it so happened, the Washington-based World Bank’s (WB) presentation of its annual Bangladesh Development Update also coincided with that of NEC announcement by the planning minister. However, the WB estimated that the Bangladesh economy is expected to grow by 6.8 percent this fiscal year and pointed to three factors for this slower growth projection. Two of these three factors are major drivers of the economy; they are export which was sluggish and the other one is income from remittances that fell by 16 percent during the year. Besides, slowing down in settlement of letters of credit for industrial raw materials also mattered.

The Update was presented by the WB country director for Bangladesh, Bhutan and Nepal Qimiao Fan and lead economist Zahid Hussain. In this context, an interesting conversation that took place between a newsperson and the WB’s Zahid Hussain needs special mention. He replied, when asked why the World Bank’s growth projections always remain lower than the BBS projections, “What’s the (WB’s) benefit of making conservative projections?”.
He however, pointed out that both the growth figures are good and debating over the minor discrepancy would only distract the attention from the real issue. He said, investment, exports and remittances have slowed down compared to last year and these should be discussed in details. The WB Update suggested that most of other indicators have performed better than last year.
Hussain said: “We see from statistics that investment is rising. But it is not clear where these investments take place and at what amount.” Export growth during the first 10 months of FY2016-17 stood at 3.9 percent as against 9.2 percent registered a year earlier.
He has also said that the WB estimate did not include crop and other damages caused by the flash flood in haor areas in its calculation

 

[Mage]

awami league orchestrated fastest growing Bangladesh economic disaster is spreading through broader economy and banking systems.

SoCBs' provision shortfall widens on higher NPLs

Public banks are getting into some difficulty in lending as their overall shortfall in provision against both classified and unclassified loans increased over 6.0 per cent in the first quarter (Q1) of this year.

According to the central bank's latest statistics, the amount of provisioning shortfalls of three out of the six state-owned commercial banks (SoCBs) rose to Tk 64.73 billion during the January-March period of the current calendar year from Tk 60.81 billion in the preceding quarter.

Talking to the FE, a senior official of the Bangladesh Bank (BB) said the provision shortfall of SoCBs widened during the period under review mainly owing to higher growth in their non-performing loans (NPLs).

http://www.thefinancialexpress-bd.c...Bs'-provision-shortfall-widens-on-higher-NPLs

Our lord ad saviour @idune please tell me what is the correct GDP per capita income of Bangladesh. It was 495USD when BNP and Holy Jamaat Islami left power. After 8 years of catastrophic AL rule it must have gone down to 100-150 USD. Right?

 

[M_Saint]

Our lord ad saviour @idune please tell me what is the correct GDP per capita income of Bangladesh. It was 495USD when BNP and Holy Jamaat Islami left power. After 8 years of catastrophic AL rule it must have gone down to 100-150 USD. Right?

When BNP led GOB left the power, I KG rice of medium category was around TK.16.00 But now TK.50.00. Then a 2 bed room APT. in less posh area of Dhaka was around TK. 5000.00 but now TK. 20000.00 at least.

On the top of that GDP's base line, its measuring stick were changed to fit new one in conspirator's agenda. Finally, hushed up GDP growth or glorified financial outlook weren't the only measure of a nation's progression but the list of its ingredients was much bigger.

 

[TopCat]

When BNP led GOB left the power, I KG rice of medium category was around TK.16.00 But now TK.50.00. Then a 2 bed room APT. in less posh area of Dhaka was around TK. 5000.00 but now TK. 20000.00 at least.

On the top of that GDP's base line, its measuring stick were changed to fit new one in conspirator's agenda. Finally, hushed up GDP growth or glorified financial outlook weren't the only measure of a nation's progression but the list of its ingredients was much bigger.

Not correct. After 2008 inflation came down massively and real wages increased.

 

[Banglar Bir]

When BNP led GOB left the power, 1x Kg rice of medium category was around TK.16/= But has now increased to TK.50/-. Back then a 2x bed room Apt. in less posh area of Dhaka was around TK. 5000/= but now the monthly rent has increased to TK. 20000/=, at least.
On the top of that GDP's base line, its measuring stick were changed to fit new one in conspirator's agenda. Finally, hushed up GDP growth or glorified financial outlook weren't the only measure of a nation's progression but the list of its ingredients was much bigger.

Absolutely correct, the inflation rate and enhanced cost of living index needs to be incorporated, finally the correct HDI could be ascertained. GDP growth alone is not the overall factor in determining the actual PPP figure,that to NOT to be accumulated in the hands of a few individuals, equi distribution of wealth should be implemented.

 

[Flynn Swagmire]

equi distribution of wealth should be implemented.

Simply not possible especially in developing economy...

 

[Banglar Bir]

VAT rate fixed at 12%

Faruque Ahmed

The Finance Minister’s conciliatory stance to increase VAT rate to 12 percent under the next fiscal 2017-18 instead of 15 percent appears a good step. The existing VAT rate is 7 percent. It will immensely increase the government revenue with lower impact on businesses.

But what remains to be seen if huge revenue collection without improving the quality of public expenditure can bring about the desired growth. Achieving higher growth needs plugging huge corruption and misuse of public funds too. It also needs stopping capital flight which has been estimated to be at its peak.
The new VAT law was passed in 2012 in line with the IMF guidelines but its implementation was on hold on pressures from the business community which wanted more time. But now Muhith is determined to implement the new VAT law from FY 2017-18.

The Finance Minister remained focused mainly on his higher revenue target which he thought would rise by up to 30 percent next year. Pointing to the extent of tax evasion, Mr. Muhith had earlier said that “there are ‘more than 800,000 small- and medium businessmen who submitted income tax returns last year. But only 32,000 are paying income taxes.”

Meanwhile the Centre for Policy Dialogue (CPD) recommended cutting prices of kerosene and diesel in the next budget for the benefit of lower income people. “Prices must be reduced. Making profit from these fuels is not justified from social point of view as poor people use them,” CPD researcher Towfiqul Islam Khan said pointing to its impact on higher utility prices that affect the poor.

CPD also called for 12 percent VAT instead of 15. It said, the recommendations made by IMF are not sustainable here.

 

[Mage]

When BNP led GOB left the power, I KG rice of medium category was around TK.16.00 But now TK.50.00. Then a 2 bed room APT. in less posh area of Dhaka was around TK. 5000.00 but now TK. 20000.00 at least.

On the top of that GDP's base line, its measuring stick were changed to fit new one in conspirator's agenda. Finally, hushed up GDP growth or glorified financial outlook weren't the only measure of a nation's progression but the list of its ingredients was much bigger.

Like TopCat said your figures are wrong. 16taka kg rice was probably when Khaleda came to power. Not when she left. Inflation rate went down after AL came to power

 

[M_Saint]

Not correct. After 2008 inflation came down massively and real wages increased.

Absolutely cooking the book up to promulgate absolute bull and dog shyte. I'VE almost daily based contact with many different types of people of BD. Previous progressive/hard working middle class has almost been wiped out by current Dalals to give a consumption based/newly developed capitalist's one, who are jacking up the price of goods thus putting extra ordinary pressure on poor and creating ultimate class struggle over there.

Lie TopCat said your figures are wrong. 16taka kg rice was probably when Khaleda came to power. Not when she left. Inflation rate went down after AL came to power

Before calling other liars, first learn if UR parents are BDeshi or fake one, understand? During the 1st quarter of 2006, the top quality rice was TK 26.00 P/K whereas medium quality's one was around TK. 16.00 P/K. Go check it out.