Atiur differs on Muhiths fear on growth
Sunday, December 25, 2011
Atiur differs on Muhiths fear on growth
Atiur Rahman
UNB, Dhaka
In a projection clearly contradictory to the finance ministers 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 countrys 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, Im not sure where well ultimately go as it depends on how well 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.
Sunday, December 25, 2011
Atiur differs on Muhiths fear on growth
Atiur Rahman
UNB, Dhaka
In a projection clearly contradictory to the finance ministers 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 countrys 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, Im not sure where well ultimately go as it depends on how well 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.
