Next GDP growth target 7.3%

[CaPtAiN_pLaNeT]

Next GDP growth target 7.3%

Next GDP growth target 7.3% | Bangladesh | bdnews24.com

Tue, Apr 10th, 2012 5:44 pm BdST


Dhaka, Apr 10 (bdnews24.com)—Finance minister Abul Maal Abdul Muhith on Tuesday said the next budget will target the economy to grow at 7.3 percent.

He gave out the information at a views-exchange meeting on the next fiscal with economists at the secretariat.

Muhith said the budget in the 2012-13 fiscal will be around Tk 1.89 trillion.
The current budget is worth around Tk 1.63 trillion and the GDP growth rate target has been forecast at 7 percent.

The minister said the average inflation rate in the current fiscal was just above 10 percent. "Our target in the new fiscal will be to bring it down to a single digit," he said.

The last budget envisaged the average inflation rate within 7.5 percent. But according to a recent Bangladesh Bureau of Statistics (BBS) report published in April, the general inflation topped 10 percent in March.

Muhith said agriculture, rural development and human resource development would be given the highest priority in the new budget as was done in the previous one.

He said the power sector would also be prioritised in the next budget.

bdnews24.com/arh/zk/bd/1710h

 

[Gautam]

all the best.

 

[boltu]

I doubt it specially under this puppy minister,i used to have a lot of faith on Malamaal Muhit but not anymore.
Whatever, hope for the best.

 

[damiendehorn]

Investment should be focused on export industries, specially in smal and medium engineering, IT and service industries based on the outsourcing model.

 

[Mattrixx]

this year govt tergated 7% gdp but they couldn't reach to it but next time the target is 7.3%.So i think we will manage only 7%.

 

[Maira La]

this year govt tergated 7% gdp but they couldn't reach to it but next time the target is 7.3%.So i think we will manage only 7%.

We shouldn't be too obsessed with the growth rate. Instead, our focus should be on building a SUSTAINABLE manufacturing base, a platform for future generations to drive the growth. GoB has no long-term plans (not even 5-year or 10-year plans) in place and there's just way too much hype surrounding economic growth and the notion of "BD magically turning into the next China".

 

[TopCat]

We shouldn't be too obsessed with the growth rate. Instead, our focus should be on building a SUSTAINABLE manufacturing base, a platform for future generations to drive the growth. GoB has no long-term plans (not even 5-year or 10-year plans) in place and there's just way too much hype surrounding economic growth and the notion of "BD magically turning into the next China".

Manufacturing growth is still high. So dont be passimistic.

Investment should be focused on export industries, specially in smal and medium engineering, IT and service industries based on the outsourcing model.

Well, it has to be in both front, domestic consumption and export oriented. We need huge investment for domestic demand as well. We need products which could be affordable to our own people so that they could improve the standard of their life.

 

[Maira La]

Manufacturing growth is still high. So dont be passimistic.

"High" relative to what? Are we doing great compared to our competitors, such as Vietnam?

 

[scholseys]

its quite difficult to do business in Bangladesh. Ease of doing business in Bangladesh is a pain in the butt. Banks are hardly letting out loans in bangladesh these days, very selective; you need a lot of 'todbir'

 

[scholseys]

"High" relative to what? Are we doing great compared to our competitors, such as Vietnam?

we are doing great compared to vietnam if you factor in our population density. I say we are doing great and only god knows how we are doing it....our politicians have no 5 year plan or 10 year plan, still we are kicking some major *** in the growth department....only god knows

 

[Maira La]

we are doing great compared to vietnam if you factor in our population density. I say we are doing great and only god knows how we are doing it....our politicians have no 5 year plan or 10 year plan, still we are kicking some major *** in the growth department....only god knows

I have highlighted the word "sustainable" in one of my posts^^. If only God and none other than him knows how we're doing great, then it's not sustainable.

 

[OrionHunter]

Constraints need to be addressed if Bangladesh’s development and poverty reduction goals are to be met in the near to medium term. These are:

Investment. To achieve sustained rapid growth Bangladesh must achieve higher levels of investment by removing impediments.

Public Expenditure Management. For the government to meet its growth and poverty reduction objectives, the efficiency of public spending must also be improved so that planned development spending by the government is actually realized.

Resource Mobilization. The government will need to strengthen resource mobilization while maintaining reasonable price stability. This will require reforms in tax policy and strengthened tax administration.

Trade Liberalization. Bangladesh’s economy is still heavily protected, which limits its ability to take full advantage of the opportunities available to it in the global economy. There is potential for considerably greater regional trade which would produce significant economic benefits for South Asia as a whole and for Bangladesh in particular.

Increase Efficiency of Remittances. Emigration and the connected diaspora are valuable assets that must not to be wasted. Assistance in increasing the efficiency of remittance services, both internationally and internally in the country, is important.

Cheers!

 

[Skallagrim]

If inflation hits at about 12%, then GDP growth of some 7% doesn't make much sense.

If anything we are following the wrong policy. To my knowledge Rental Power Plants are one of the main reasons behind the current economic disaster.

1. High cost of electricity production -> increased subsidy -> increased govt borrowing from banks -> high lending rate by banks -> increased cost of business -> increased commodity price.

2. High cost of electricity production -> increased subsidy (higher govt spending, i.e. borrowing) -> debt monetizing by Bangladesh Bank-> inflation

3. Oil based Rental Power Plants -> increase of petroleum & capital machinery import-> imbalance of foreign currency supply and demand -> appreciation of dollar price -> rise in price of imported commodities and other commodities that depend on imports.

Govt claims it added some 1500 MW of electricity to the national grid. Industrialists say they see no improvement in electricity supply. Experts say electricity production could improve if govt was attentive in maintenance of existing plants rather than taking politically motivated costly initiatives like purchasing high cost power.

 

[scholseys]

^^---------inflation is counted into gdp growth.

 

[CaPtAiN_pLaNeT]

^^---------inflation is counted into gdp growth.

Everyone knows that. But less inflation would help more GDP growth.