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WB projects stable growth for Bangladesh economy

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WB projects stable growth for Bangladesh economy

WB projects stable growth for Bangladesh economy

WB projects stable growth for Bangladesh economy
Bangladesh economy will remain stable with over 6.0 per cent GDP growth in the next two years when most of the countries including neighbouring India will see a slowdown, according to the World Bank (WB) Global Economic Prospects (GEP) 2012, released in Washington Wednesday, reports BSS.

The report shows that the economy in Bangladesh this year would grow by 6.1 per cent when India would have a slowdown with 6.0 per cent growth, lower from last year's 7.0 per cent.

In South Asia, Bangladesh will have over 6.0 per cent growth only after Sri Lanka where the gross domestic product (GDP) this year will be 6.8 per cent. Pakistan will have 4.0 per cent and Nepal 3.5 per cent growth this year, the report said.

The report further said the GDP growth would ease up next year to 6.3 per cent in Bangladesh, 7.5 per cent in India, 7.7 per cent in Sri Lanka, 4.2 per cent in Pakistan and 3.8 per cent in Nepal.

"Following a vibrant 9.1 per cent growth rate in 2010, real GDP growth in South Asia decelerated to an estimated 6.6 per cent in 2011, with a sharp fall-off evident in industrial production and trade late in the year," the report said.

The WB report noted that the regional growth exceeded the long-term average of 6.0 per cent, reflecting above trend activity in Bangladesh, India and Sri Lanka. It also pointed out some risks and vulnerabilities, which require special attention to accelerate growth.

In this report, the WB recommended fiscal consolidation through greater revenue mobilisation and expenditure rationalisation to protect critical social programmes.

"Expanding the drivers of growth also holds potential," the report said and suggested pursue new sources of growth in both domestic and external markets, which may include focusing on export growth toward faster growing emerging markets, as well as internal market enhancements through structural and governance reforms.

"Such actions would help boost export demand, help raise investment, provide better jobs and generate an environment for more inclusive growth," it added.

Projecting lower global growth which would be 3.4 per cent in 2012 and 4.0 in 2013, the WB advised developing countries to evaluate their vulnerabilities and prepare for facing further shocks, while there is still time.
 
Indian slowdown is understandable as their government spent a lot of money 2008-2010 global recession which has a lagging effect in their economy. But for BD, its not the case. But the fuel subsidy should come down more in the next year and the growth projection should be higher than what anticipated.
 
^As long as IMF is fine with it.

But true, BD economy was not too affected due to recession due to a small economy.

We seriously need to boost our manufacturing sector.
 
BD economy is doing well.

if BD manage 8% growth than within a decade BD will change alot.

BD has a peace environment only they need good leaders

unfortunately both BD and Pak are looking for some sincere and honest leaders
 
The report shows that the economy in Bangladesh this year would grow by 6.1 per cent when India would have a slowdown with 6.0 per cent growth, lower from last year's 7.0 per cent.

Thats according to the calendar year. On fiscal year basis India will grow slightly faster than Bangladesh. Good news for South Asia though.

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GDP growth rate of 6% with inflation 12% - combine effect make the growth more like 4-5% even less. So anyone jumping with growth news are making fool out of themselves based on BSS propagated news, regime control news agency.

Besides,Awami regime is broke financially and broken backbone of Bangladesh economy. There is already doubt if awami regime will able to pay for govt employee in six month. Banking sector is destroyed and in verge of collapse because of stock market looting and excessive borrowing by Awami regime.

Awami regime in serious bid to coverup economic destruction of Bangladesh economy. As such we see Awami regime spent quarter of million pound to put advertisement in foreign newspaper, Awami finance minister writing op ed in Nayadiganta, newpapper they so many times tried to close.
So any one jumping on economic growth in next 2 years are in PURE ILLUSION. Here is a latest example how Awami regime has made Bangladesh economy bankrupt.


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SCBs refuse to open L/Cs for BPC
Corporation seeks MoF's intervention


Nazmul Ahsan

The state-owned commercial banks (SCBs) -- Sonali, Janata and Agrani -- are refusing to open Letters of Credit (L/Cs) for Bangladesh Petroleum Corporation (BPC) to import petroleum, as the banks are now facing serious dearth of liquidity both in US dollar and Bangladesh Taka, bankers and officials have said.

The BPC, upon being refused several times by the banks to open L/Cs worth $135 million, sought the intervention of the Ministry of Finance (MoF) last week to facilitate the import of fuel oil.

The MoF could not give any solution to the problem, while Bangladesh Bank (BB) shifted responsibility to the government to solve the crisis.

The proposed L/Cs were sought to import diesel and furnace oil.

The BPC in a letter last week sought the intervention of MoF in this regard. The letter said Sonali Bank Ltd, Janata Bank Ltd and Agrani Bank Ltd, despite repeated requests from BPC, are not opening L/Cs worth $135 million causing uncertainty in ensuring fuel supply for the country.

Of the total, Sonali Bank was requested to open an L/C worth $85 million, Janata Bank Ltd was asked for an L/C of $27 million and Agrani for an L/C worth $23 million.

The letter said until May, this year, about 15 L/Cs would have to be opened each month to import petroleum as the demand for fuel oil would be high for the next five months to meet the demand of irrigation.

BPC Chairman Abubakr Siddiqui said the Corporation had to pay huge demurrage to the confirming foreign banks for the delay in opening L/Cs by local banks.

"The BPC will be able to pay the money to L/C opening banks after one and half months. We are continuously hammering both the SCBs and the MoF to settle the problem," Abubakr Siddiqui told the FE on Friday.

"The delay of the banks in opening L/Cs will demean the image of the country abroad, particularly in the international financial market," he added.

The BPC still gives subsidy worth Tk 18 for per litre diesel and Tk 7.50 for a litre of furnace oil in the local market, the BPC Chairman said.

Top bankers at the SCBs said BPC was their 'permanent liability'. "The government does not treat them as corporatised banks as the MoF seldom provides them with cash money in clearing the outstanding 'loans of the corporation," they added.

They said Treasury Bonds issued by the government instead of cash money should not be the final and ultimate tool of MoF.

Syed Abdul Hamid, managing director, Agrani Bank Ltd, said they were facing liquidity crisis in opening L/Cs for importing petroleum.

"The BPC cannot pay money, while the government issues us only Bond," Mr Hamid told the FE.

"We have scarcity of cash money to buy US dollars from the market. The BB does not supply us the required US dollars," he added.

Mr Hamid said the problem could be eased if BPC purchased petroleum through deferred payment.

Another top banker at Sonali Bank said they were facing serious crisis in both US dollars and Taka. He said the demand for the US dollar has increased but not its supply.

A top banker at the BB said providing US dollars to banks for opening L/Cs in importing petroleum should not be a regular case in the present situation.

He, however, said, "If MoF instructs us, only then are we capable of sourcing dollars for the BPC.

"The MoF should clarify," was the answer of a high official at the BB.

The BPC chairman said most of the international petroleum suppliers "don't sell fuel under the deferred payment system".

"A number of suppliers, who accept the system, want above five per cent interest rate for deferred payment," he added.

SCBs refuse to open L/Cs for BPC
 
GDP growth rate of 6% with inflation 12% - combine effect make the growth more like 4-5% even less. So anyone jumping with growth news are making fool out of themselves based on BSS propagated news, regime control news agency.


So any one jumping on economic growth in next 2 years are in PURE ILLUSION. Here is a latest example how Awami regime has made Bangladesh economy bankrupt.

You are the only one doing propaganda here. This is Real Gdp growth, so the inflation is already accounted for.

Real GDP growth rate = Nominal GDP growth rate– Inflation Rate
 
Is it possible to have a quotta in the anual budget to buy gold in order to reduce the inflation rate?? Since the price of the fuel is increasing domestically so there will be less deficit in that sector!!
 

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