Bangladesh to achieve 6.4pc growth in 2011: ESCAP
Friday, 6 May 2011
FE Report
The economy of Bangladesh demonstrated considerable resilience, despite the global economic crisis, and the growth rate of its gross domestic product (GDP) is projected at 6.4 per cent for 2011, according the latest United Nations Economic and Social Survey. The Survey was carried out by the UN Economic and Social Commission for Asia and the Pacific (ESCAP). The GDP of Bangladesh grew at 5.8 per cent in 2010 against 5.7 per cent in 2009, said the survey report. Director General (DG) of Bangladesh Institute of Development Studies (BIDS) Dr Mustafa K Mujeri released on Thursday the findings of the survey report 2011 at CIRDAP auditorium in the capital. The United Nations Information Centre (UNIC) organised the launching ceremony of the survey report. "The inflationary pressure also re-emerged in the Bangladesh economy as the consumer price index increased by 7.3 per cent in 2010 against 6.7 per cent in 2009. Bangladesh Bank raised its policy rate in May 2010 to contain inflationary pressure," said the DG of BIDS. He said the budget deficit deteriorated slightly to 4.5 per cent of GDP in 2010. The fiscal situation is expected to deteriorate further in 2011 as the government attempts to tackle a complex array of problems, ranging from shortages of power, gas and water to the need for enhanced welfare spending, he pointed out. "The biggest challenge being faced by Bangladesh is improving the supply of electricity. Transmission and distribution losses vary from 20 per cent to 40 per cent in different countries in South Asia where theft of electricity is a major problem. The promotion of regional cooperation in the energy sector can benefit the participating countries enormously," he said. "There should be short-, medium- and long-term policies to address the power crisis and electricity stamp coupon should be given to the poor to pay their electricity bills", he added. "Bangladesh needs to enhance its labour productivity and production efficiency. Budget deficit might increase this year due to subsidy in power and some other social safety net programmes. Otherwise, it will be difficult to move forward keeping pace with the developing world," Dr Mujeri said. "Inflationary pressure should be contained with continued economic reforms with special emphasis on internal policy with resource mobilisation, technological upgradation and regional cooperation for bringing dynamism in sustaining growth in the region," he said. "Strong and sustained growth momentums is needed in South Asia to tackle the long-term problem of widespread poverty. Most countries have made progress in reducing poverty over the past few years. At least one in three persons in South Asia is classified as poor," said one of the authors of the survey report, Clovis Freire. With regard to Bangladesh situation as noted in the survey report, he said, "Bangladesh needs to increase its production capacity through diversification of value-adding sophisticated products". "Bangladesh needs to develop micro-economic friendly environment that will help facilitate public and private partnership to boost up financial and economic activities," Mr Clovis said. He said the fight against poverty must continue. Countries need to continue pursuing economic reforms to improve productivity, strengthen public institutions, improve economic governance and build social safety nets to protect the vulnerable segments of the population, he noted. The survey report said, after witnessing a slump during the first half of fiscal year 2010, Bangladesh exports picked up in the second half of the year and registered an overall growth of 4.1 per cent in the full fiscal year. Total imports grew faster than exports, thus widening the trade deficit. Remittance earnings from the overseas Bangladeshi workers continued to grow, albeit at a slower rate. They reached close to US$ 11billion in 2010 and not only closed the gap on merchandise trade but also helped to post a surplus in the current account balance, said the survey. However, the report also warned about the rising food prices that could seriously undermine the global process of poverty reduction. As many as 42 million more people could remain in poverty in 2011, in addition to 19 million already affected last year, it stated. Officer-in-Charge of United Nations Information Centre (UNIC), Kazi Ali Reza and Economist Qazi Jahirul Alam, among others, were present.
The economy of Bangladesh demonstrated considerable resilience, despite the global economic crisis, and the growth rate of its gross domestic product (GDP) is projected at 6.4 per cent for 2011, according the latest United Nations Economic and Social Survey. The Survey was carried out by the UN Economic and Social Commission for Asia and the Pacific (ESCAP). The GDP of Bangladesh grew at 5.8 per cent in 2010 against 5.7 per cent in 2009, said the survey report. Director General (DG) of Bangladesh Institute of Development Studies (BIDS) Dr Mustafa K Mujeri released on Thursday the findings of the survey report 2011 at CIRDAP auditorium in the capital. The United Nations Information Centre (UNIC) organised the launching ceremony of the survey report. "The inflationary pressure also re-emerged in the Bangladesh economy as the consumer price index increased by 7.3 per cent in 2010 against 6.7 per cent in 2009. Bangladesh Bank raised its policy rate in May 2010 to contain inflationary pressure," said the DG of BIDS. He said the budget deficit deteriorated slightly to 4.5 per cent of GDP in 2010. The fiscal situation is expected to deteriorate further in 2011 as the government attempts to tackle a complex array of problems, ranging from shortages of power, gas and water to the need for enhanced welfare spending, he pointed out. "The biggest challenge being faced by Bangladesh is improving the supply of electricity. Transmission and distribution losses vary from 20 per cent to 40 per cent in different countries in South Asia where theft of electricity is a major problem. The promotion of regional cooperation in the energy sector can benefit the participating countries enormously," he said. "There should be short-, medium- and long-term policies to address the power crisis and electricity stamp coupon should be given to the poor to pay their electricity bills", he added. "Bangladesh needs to enhance its labour productivity and production efficiency. Budget deficit might increase this year due to subsidy in power and some other social safety net programmes. Otherwise, it will be difficult to move forward keeping pace with the developing world," Dr Mujeri said. "Inflationary pressure should be contained with continued economic reforms with special emphasis on internal policy with resource mobilisation, technological upgradation and regional cooperation for bringing dynamism in sustaining growth in the region," he said. "Strong and sustained growth momentums is needed in South Asia to tackle the long-term problem of widespread poverty. Most countries have made progress in reducing poverty over the past few years. At least one in three persons in South Asia is classified as poor," said one of the authors of the survey report, Clovis Freire. With regard to Bangladesh situation as noted in the survey report, he said, "Bangladesh needs to increase its production capacity through diversification of value-adding sophisticated products". "Bangladesh needs to develop micro-economic friendly environment that will help facilitate public and private partnership to boost up financial and economic activities," Mr Clovis said. He said the fight against poverty must continue. Countries need to continue pursuing economic reforms to improve productivity, strengthen public institutions, improve economic governance and build social safety nets to protect the vulnerable segments of the population, he noted. The survey report said, after witnessing a slump during the first half of fiscal year 2010, Bangladesh exports picked up in the second half of the year and registered an overall growth of 4.1 per cent in the full fiscal year. Total imports grew faster than exports, thus widening the trade deficit. Remittance earnings from the overseas Bangladeshi workers continued to grow, albeit at a slower rate. They reached close to US$ 11billion in 2010 and not only closed the gap on merchandise trade but also helped to post a surplus in the current account balance, said the survey. However, the report also warned about the rising food prices that could seriously undermine the global process of poverty reduction. As many as 42 million more people could remain in poverty in 2011, in addition to 19 million already affected last year, it stated. Officer-in-Charge of United Nations Information Centre (UNIC), Kazi Ali Reza and Economist Qazi Jahirul Alam, among others, were present.