GDP growth to reach 8.13pc, per capita income $1909 in FY19; expecting double digit growth in 3 year

[Black_cats]

GDP growth to reach 8.13pc, per capita income $1909 in FY19

http://www.bssnews.net/?p=183149


DHAKA, March 19, 2019 (BSS) – The country’s economy will grow by record 8.13 percent in the current fiscal year (FY19) while the per capita income will reach US$1,909, said Finance Minister AHM Mustafa Kamal today.

The minister said this while briefing reporters after the day’s National Economic Council (NEC) meeting held at its conference room with Prime Minister Sheikh Hasina in the chair. Planning Minister MA Mannan was present.

Referring to the provisional estimation of the Bangladesh Bureau of Statistics (BBS), Kamal said that the GDP growth rate is to reach 8.13 percent against 7.86 percent recorded in the last fiscal year.

He also said that the per capita income will increase to $1909 from $1751 in the last fiscal year.

The finance minister informed that the investment-GDP ratio in the current fiscal year is to reach 31.57 percent from 31.13 percent in the previous fiscal year.

Out of the total provisional investment-GDP ratio of 31.57 percent in the current year, the public investment ratio to GDP will rise to 8.17 percent while the private investment ratio to GDP will rise to 23.40 percent.

He said that the total size of the GDP in the current fiscal year will rise to Taka 25,36,177 crore from Taka 22,50,479 crore recorded in the last fiscal year.

The finance minister said that the areas of potentials are huge in the country, but many of those still remained unexplored. “We’ll have to explore those areas,”

Terming the private sector the ‘engine of growth’, Kamal said that they would give more incentives to the private sector to bring it more into the mainstream of the economy.

Mentioning that all the major macroeconomic indicators are now better, he said the rising trend of export earnings as we as inward remittance, increased investment as well as the growing size of the manufacturing sector have been helping in achieving this “eye-catching” growth.

The finance minister also expressed his high optimism about attaining double digit growth rate within the next four years.

According to the BBS provisional data, the growth of the agriculture sector in this year is going to reach 3.51 percent while the industry sector 13.02 percent and the services sector 6.50 percent.

Besides, the GNI in the current fiscal year will reach Taka 26,49,786 crore and the per capita GDP $1,827.

 

[Indus Pakistan]

Let's accept that Bangladesh will go on to become the first developed country of the erstwhile Raj. Much respect!

Let's accept that Bangladesh will go on to become the first developed country of the erstwhile Raj. Much respect!

You ask about Pakistan? Well after 70 years we are still trying to figure out -

• Pakistan Ka Matbla Kya?
• Free Palestine
• defend Saudia Arabia
• Look after the Ummah

 

[Black_cats]

Let's accept that Bangladesh will go on to become the first developed country of the erstwhile Raj. Much respect!

You ask about Pakistan? Well after 70 years we are still trying to figure out -

• Pakistan Ka Matbla Kya?
• Free Palestine
• defend Saudia Arabia
• Look after the Ummah

Doing that is not the problem. Only difference between Pakistan and Bangladesh is it has brought a significant portion of the woman into workforce through NGOs or by letting them work at RMG. Which contributed to the GDP and reduced poverty. Another thing Bangladesh has tried to ensure education for all and introduce the concept since 1970s boys or girl two children is enough which reduced population growth rate as well. Now Bangladesh is working to reduce or eliminate child marriage (before 18 for woman), halting house maid job for minors or ensuring they gets proper education while doing so. Meanwhile trying to train millions to send skilled labor abroad and develop skilled labor at home. These are the only differences where Pakistan failed to work on. You need to being your woman into workforce that will ensure more economic activity and high gdp.

 

[American Pakistani]

Doing that is not the problem. Only difference between Pakistan and Bangladesh is it has brought a significant portion of the woman into workforce through NGOs or by letting them work at RMG. Which contributed to the GDP and reduced poverty. Another thing Bangladesh has tried to ensure education for all and introduce the concept since 1970s boys or girl two children is enough which reduced population growth rate as well. Now Bangladesh is working to reduce or eliminate child marriage (before 18 for woman), halting house maid job for minors or ensuring they gets proper education while doing so. Meanwhile trying to train millions to send skilled labor abroad and develop skilled labor at home. These are the only differences where Pakistan failed to work on. You need to being your woman into workforce that will ensure more economic activity and high gdp.

So true. In form of women, half of Pakistan's population doesn't work. And then there are those lazy men who rather beg than to work. Bangladesh is doing excellent for its own good.

 

[Black_cats]

So true. In form of women, half of Pakistan's population doesn't work. And then there are those lazy men who rather beg than to work. Bangladesh is doing excellent for its own good.

Pakistan has potential but not utilizing it properly. They should focus on the things which is barrier to progress. Compared to Bangladesh Pakistan has another problem it needs to spend more on defence that Bangladesh spends on development work.

Bangladesh has no natural resources like Saudi Arabia. There is no alternatives to prepare the Human Resources for development of the country.

But India’s water terrorism costing Bangladesh 1.5 billion USD yearly and smuggler ring costing billions more plus 2.5 billions usd worth of drugs comes mainly from Myanmar and partially from India which is ruining our yourh. If Bangladesh focus on it, that can save billions.

 

[coffee_cup]

There is one significant difference between Pakistan and Bangladesh.

Unlike Bangladesh, Pakistan is a victim and focus of obsessed neighbor who is an existential threat to our country.

All the terror outfits sponsored by one of the largest economies in the world (having the largest number of poor at the same time) forces Pakistan to spend more on the defense. Due to a constant rise in tensions and high alert situation, the economic activity gets affected as well.

This is one huge advantage that Bangladesh has over Pakistan.

Pakistan is getting on track and as you can see, right when some of the indicators start improving our neighbor gets another war diarrhea to put us under pressure again.

 

[Black_cats]

Home Front Page
12:00 AM, March 20, 2019 / LAST MODIFIED: 12:02 AM, March 20, 2019
GDP growth may cross record 8pc

Finance minister puts it down to high growth in manufacturing, service sectors

https://www.thedailystar.net/frontpage/news/gdp-growth-may-cross-record-8pc-1717699

Star online graphics

Star online graphics

Rejaul Karim Byron and Refayet Ullah Mirdha

Bangladesh economy is going to cross a record 8 percent mark in the current fiscal year, powered by high growth in manufacturing and service sectors, the finance minister has claimed.

Despite a dip in the farm sector performance, the GDP growth in 2018-19 is likely to be 8.13 percent, up from 7.86 percent the previous year, according to the provisionary figure from the Bangladesh Bureau of Statistics (BBS).

Finance Minister AHM Mostafa Kamal released the data yesterday after a meeting of the National Economic Council at the planning ministry.

“All 15 components of the GDP have increased, especially the significant rise in export receipts and investment. As a result, we may cross 8 percent growth,” Kamal said.

“We are expecting a double-digit growth in the next three years,” he added.

Zahid Hussain, the lead economist at the World Bank's Dhaka office, agrees that the recent growth has been driven by manufacturing and construction, although he said he was not sure about the BBS figure.

Ahsan H Mansur, executive director of the Policy Research Institute, a think-tank, said the revenue collection and private sector credit growth did not match the government estimate.

“The GDP growth is not consistent with the revenue collection, which is weak and does not match the economic growth,” Mansur said.

Normally, the private sector credit growth indicates economic growth, but here too the performance is weak, the economist said.

The economy has been growing riding on manufacturing growth, and the manufacturing sector is mainly export-led. But the export growth is below the GDP growth estimated by the government, he noted.

Bangladesh's export is mainly dependent on garment sector. But in the first eight months of the current fiscal year, garment export grew by 14.17 percent against the expectation for 20 percent growth, he pointed out.

Also, private investment increased marginally by just 0.1 percentage point of the GDP while public investment by 0.2 percentage points, he said.

The ratio of private investment in the national GDP was 23.4 percent in the current fiscal year, according to the provisional data from the BBS. Last fiscal year, the ratio was 23.26 percent.

On the other hand, the ratio of public investment in the national GDP was 8.17 percent, which was 7.97 percent in the previous fiscal year.

“The growth therefore appears to have come from increased efficiency of capital as indicated by a decline in the incremental capital-output ratio from 3.97 last year to 3.88 this year,” Hussain said.

“Explaining the increased efficiency of capital is a bit of a puzzle, particularly when viewed against Bangladesh's rather low and almost unchanged ranking on the Ease of Doing Business and Global Competitiveness Index indicators,” he added.

The government's provisional estimates show the industries sector grew 13.02 percent this fiscal year compared to 12.06 percent the previous year.

The provisional figures are based on data from the last six to eight months. The final estimate will be disclosed in September.

The services sector grew 6.5 percent this year, up from 6.39 percent a year ago, according to the BBS data.

Data also show that the farm sector grew 3.51 percent in fiscal 2018-19, down from 4.19 percent last year.

Talking to reporters, the finance minister said Bangladesh had been continuously achieving GDP growth at over 7 percent for the last several years. And last year, the growth rose close to 8 percent despite the global economic volatility.

This year's high GDP growth is the outcome of the last several years' continued growth, he said.

 

[Peaceful Civilian]

This is very impressive growth. I think this also has to do with secular policies.
Anyway, Congrats . Good going

 

[American Pakistani]

. Compared to Bangladesh Pakistan has another problem it needs to spend more on defence that Bangladesh spends on development work.

Defense spending is a requirement for Pakistan, a necessity, something which we(Pakistanis) can't joke with.

 

[fallstuff]

Talk is cheap.

Don't count your chickens.......

 

[Homo Sapiens]

So true. In form of women, half of Pakistan's population doesn't work. And then there are those lazy men who rather beg than to work. Bangladesh is doing excellent for its own good.

high population growth rate is also eating away Pakistan's economic growth potential. Pakistan's population is growing by 2 percent every year, while other South Asian countries just by 1 percent and declining. Two percent population growth rate means, population double by every 35 years. High population growth means, too many dependent children to take care of by the income of a smaller share of economically active adult population. It severely lower the national capital accumulation and investment potential. One of the big factor on why East Asian economies so rapidly grown is because they rapidly lowered their population growth rate in 1960s and 1970s, pushed up their working age population, minimized their dependent population. This is also now happening in Bangladesh, India etc. Economists term this phenomenon as 'Demographic dividend'. This is a virtuous cycle which accelerate the economic growth.

Lower birth rate also means more women freed up to join the economic activities. Pakistan need to seriously look at this matter. No country can hope to join high income countries unless they go through this demographic dividend phage(exception being the massively oil rich tiny Gulf countries). If Pakistan can lower it's fertility rate from current 3.5 children per woman to replacement level(2.1) within 10 years, then it will surely enters into 'Demographic dividend' phage soon.

 

[Skies]

From the report it is seen that the main reason is garment export.

It also basically mean that the Garment owners (and the rich people) are far far more benefited from the growth.

But still good.

 

[Khan_21]

high population growth rate is also eating away Pakistan's economic growth potential. Pakistan's population is growing by 2 percent every year, while other South Asian countries just by 1 percent and declining. Two percent population growth rate means, population double by every 35 years. High population growth means, too many dependent children to take care of by the income of a smaller share of economically active adult population. It severely lower the national capital accumulation and investment potential. One of the big factor on why East Asian economies so rapidly grown is because they rapidly lowered their population growth rate in 1960s and 1970s, pushed up their working age population, minimized their dependent population. This is also now happening in Bangladesh, India etc. Economists term this phenomenon as 'Demographic dividend'. This is a virtuous cycle which accelerate the economic growth.

Lower birth rate also means's more women freed up to join the economic activities. Pakistan need to seriously look at this matter. No country can hope to join high income countries unless they go through this demographic dividend phage(exception being the massively oil rich tiny Gulf countries). If Pakistan can lower it's fertility rate of current 3.5 children per woman to replacement level(2.1) within 10 years, then it will surely enters into 'Demographic dividend' phage soon.

PPP per capita is still higher in PK. We have a better infratructure in cities and are middle class are much better off. All this while spending of defence much more than BD.

BD is better than PK in a few things but in majority of indexes we are ahead .

 

[Skies]

Defense spending is a requirement for Pakistan, a necessity, something which we(Pakistanis) can't joke with.

The women participation and education and NGO activities have made BD stronger in last 20 years, before AL came into power.

And for Pakistan, joining WOT was the biggest mistake in last 20 years. It ruined your exports and FDI and the local growth.

However, I believe that Imran Khan will fix all these problems within 5 to 10 years, InshAllah.

For Pakistan, I think Pakistan defense budget will bring business for Pakistan in future if can be a reliable exporters in future.

Pakistan should be expert in making defense equipment.

And it should make 999 nukes and 1 fear bomb for its enemies.

 

[Black_cats]

PPP per capita is still higher in PK. We have a better infratructure in cities and are middle class are much better off. All this while spending of defence much more than BD.

BD is better than PK in a few things but in majority of indexes we are ahead .

In most of the HDI indexes Pakistan is behind than Bangladesh

In next couple of years Bangladesh will overtake Pakistan in terms of PPP