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BB Gov. Differs on Finance Minister's Fear on Growth

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Atiur differs on Muhith’s fear on growth

Sunday, December 25, 2011
Atiur differs on Muhith’s fear on growth

Atiur Rahman
UNB, Dhaka

In a projection clearly contradictory to the finance minister’s fear, central bank governor Dr Atiur Rahman said on Sunday that the targeted 7 percent economic growth would be achieved.

“I think the 7 percent economic growth will be achieved…the overall economic determinants indicate that,” Atiur Rahman told UNB over phone.

His statement came four days after Finance Minister AMA Muhith had said achieving the projected 7 percent economic growth might not be possible in the current fiscal year due to high import cost, spiralling inflation, downward investment flow and excessive subsidies in public spending.

Talking to UNB Sunday, the Bangladesh Bank governor said they analysed the statistics of overall economy and collected data from rural economy that give a positive outlook.

He said the progress of overall rural economy made him optimistic over the achievement of the GDP target. Atiur said the key determinants of macro economy remained high in the country even during the post-recession period.


He said the country saw 47 percent growth in RMG export and 20 percent growth in remittance inflow during the last three years of the current government. The central bank chief said the country’s foreign currency reserve stood at US$ 9.35 billion till December 11. He said the country saw a 6.7 percent GDP (gross domestic product) growth in the last fiscal driven by sustainable agricultural growth and strong expansion of manufacturing and service sector.

Addressing a programme at a city hotel on Wednesday, the finance minister said: “The GDP growth in the last fiscal was 6.7 percent and in this fiscal the target is 7 percent. But, I’m not sure where we’ll ultimately go as it depends on how we’ll manage the current problem of inflation.”


However, before his candid confession over the doubt, Muhith termed the target realistic and attainable on many occasions, including in his budget speech in parliament. But the Finance Minister in his recent remark mentioned factors like excessive bank borrowing by the government and high inflation rate which are hindering the targeted growth.

He voiced concern over high commodity price, subsidies in petroleum products and soaring inflation. He also admitted that the country is in a very difficult situation with the inflation crossing the double digit.

According to Bangladesh Bureau of Statistics (BBS), the inflation crossed the double digit in March this year while it was around 11.5 percent in the last two months.
Muhith claimed that the government had to go for excessive bank borrowing this year as the prices of electricity and fuel were not adjusted timely.
 
And the clown Atiur Rahman is, he is single most destructive force behind stock market crash and excessive govt borrowing that is crashing banking sector now. There should be open public trial of this clown and hang him upside down.
 
And the clown Atiur Rahman is, he is single most destructive force behind stock market crash and excessive govt borrowing that is crashing banking sector now. There should be open public trial of this clown and hang him upside down.

BB governor is not a bad guy actually. He does what he's told.

It's that idiot Muhith.

---------- Post added at 11:41 AM ---------- Previous post was at 11:40 AM ----------

why people vote awami league? Can anyone explain? I live in canada so I don't know the scenario of bangladesh. explain plz!

People got frustrated with Tarique Zia and his goons. And apparently, the same goons are vying for positions should the BNP come to power.
 
Muhith sees difficulties

Thursday, December 29, 2011
7pc Growth, Muhith sees difficulties
Staff Correspondent

Finance Minister AMA Muhith yesterday said again achieving 7 percent growth is "difficult" in an economy having various limitations.

"With the facts of Bangladesh economy like low domestic resource mobilisation, low foreign aid and foreign investment not coming in a big way, achieving 7 percent growth is difficult," he said while releasing the sixth five-year plan (SFYP) documents at the Planning Commission.

The minister made the remarks referring to recent media reports that he expressed doubt about 7 percent growth of GDP, targeted for the current fiscal year under the SFYP for 2011-15.

Muhith said some media outlets wrongly interpreted what he had said.

The plan targets an investment of Tk 13.5 trillion to achieve over 7 percent growth of the economy during the period ending in fiscal 2015.

Of the total investment, 77.2 percent is expected to come from private sector. The remaining Tk 3 trillion will come from public sector, which one may term ambitious.

"But we will be able to do it," said the finance minister.

Despite limitations, he said, Bangladesh is considered a potential economy and a model for many in the world. "Economy cannot be pushed down no matter how much you try."

Muhith said problems like high inflation that Bangladesh faces are not unique. "It is the problem of developing countries, of the world economy, not of Bangladesh alone. Such difficulty will remain. Despite that we will move forward," he added.

Referring to his meeting with the Spanish ambassador about the reaction of a business delegation from Spain, the minister said the delegation praised the vibrancy of Bangladesh economy.

"It's a booming economy," he said, recalling the reaction of the Spanish delegation that visited Dhaka earlier.
 
Once again you proved know jack about what went on yet your mouth does not stop.

Do you think BB governor is also a RAW agent working for the benefit of India? So, how can he be a bad man? But, you must find out the truth. Also think of Tareque, he can also be an Indian agent, isn't it? Because he stole many hundred millions of dollars from the Bangladeshis whoever wanted to build a factory. I do not understand why Jamaatis like you support Tareque. Is it because his unpopularity will raise Jamaati popularity?
 
@ "Making a castle on the air". No body believes on AL's propaganda.

What do you know about economics? Do not troll and play politics in an international forum and do not try to prove that BD is a non-functioning country like your fatherland in the west.
 
Not too sure but there are some truths in Atiur's statement, even IMF expecting that the inflation rate will come down to single digit within some months!!
 
Not too sure but there are some truths in Atiur's statement, even IMF expecting that the inflation rate will come down to single digit within some months!!

There is little possibility that the inflation rate will come down. The dollar now sells at Tk.84. This will cause more inflation by increasing the prices of imported goods. By the way, in a developing economy inflation seems to be obvious. GoB is borrowing too much of money in order, but not limited, to finance many power stations. When the power stations provide electricity to factories they will produce additional goods/wealth.

Inflation may abate a little at that point, hopefully. At prersent, too few goods are chasing too large a quantity of money. When additional goods are produced in the factories, a larger quant'y of goods will be chasing the same amount of money. This MAY reduce the rate of inflation. But, any way, no one can predict such a thing so surely.
 

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