Print

Banking Sector Caught in Trap

Bangladesh Economic Update, July 2014 

MEU July 2014The current issue of Bangladesh Economic Update analyses that the country’s banking sector is caught in trap, characterised by high rate of interest, excess liquidity and declining growth in disbursement of credit to private sector, intermediating lower investment, coupled with poor risk management, fraudulence, driven by captured governance and lax oversight, resulting in lower profitability to the shareholders. Besides this backdrop, questions are being raised concerning the far-sighted deregulation of the financial sector. Growth of credit in private sector registered at 11.46 percent in March 2014 over March2013 where it was12.72 percent in March 2013over March 2012 that indicates a 1.26 percent decrease witnessed at the same period in the previous year. Growth of credit in public sector has been observed a growth of 10.76 percent in March 2014 over March2013 compared to 8.71 percent in March 2013over March 2012, an increase of 2.05 percent.

FULL REPORT

ENGLISH PRESS RELEASE

BANGLA SUMMARY

Print

Long on Targets, Short on Realities

A Rapid Assessment of National Budget 2014-15 

Budget FY 2014-15

The current budget is tabled against the backdrop of three major economic challenges – decelerated economic growth due to stagnant investment, consumption financing fiscal deficit failing to augment the multiplier effect to overcome supply side constraints like inadequate infrastructure and decelerated increase in social sector spending – amidst raging strife between the ruling party and the parties in opposition.

The seeds of the present challenges have been palpable and have been articulated in a number of publications of Unnayan Onneshan (UO). More specifically, the organisation’s pre-budget annual publication on the state of economy in Fiscal Year (FY) 2013-14 clearly identified the reasons for fall in Gross Domestic Product (GDP) below the average rate of the last decade (Unnayan Onneshan 2014). The old problems have also remained unabated over the years, while new ones have been added as time elapsed. In the post-budget assessment of FY 2013-14, the issues of decelerated growth, squeezed investment due to fiscal composition and deficit financing, and implications of contractionary monetary policy have also been warned.

FULL REPORT

ENGLISH PRESS RELEASE

BANGLA SUMMARY

Print

Export, Import, Remittance and FDI: Recent Trends

Bangladesh Economic Update, April 2014 

MEU April 2014

The current issue of Bangladesh Economic Update attempts to understand the causes of declining growth in Gross Domestic Product (GDP) against the backdrop of recent underperformances in the external sector due to falling investment demand-induced decreased import of capital machinery, concentration of productive capacity in readymade garments and lack of production diversity in other exporting commodities, declining rate of wage earners’ remittance inflow and unsatisfactory inflow of Foreign Direct Investment (FDI) in the country.

External sector possesses upward trend in export earnings, despite slower rate of remittance inflow and import payments during the last fiscal year. Collapse in Rana Plaza and Tazreen Fashion, political instability challenged the export earnings to grow at a decreasing rate in recent years. However, despite these challenges, the growth in RMG sector can especially be ascribed to the increase in knit and woven garments. Moreover, export earnings increased more from non-traditional markets than that of the traditional markets.

FULL REPORT

ENGLISH PRESS RELEASE

BANGLA SUMMARY

Print

State of Unemployment and Poverty

Bangladesh Economic Update, May 2014 

MEU April 2014

The current issue of Bangladesh Economic Update attempts to understand the causes of declining growth in Gross Domestic Product (GDP) against the backdrop of recent underperformances in the external sector due to falling investment demand-induced decreased import of capital machinery, concentration of productive capacity in readymade garments and lack of production diversity in other exporting commodities, declining rate of wage earners’ remittance inflow and unsatisfactory inflow of Foreign Direct Investment (FDI) in the country.

External sector possesses upward trend in export earnings, despite slower rate of remittance inflow and import payments during the last fiscal year. Collapse in Rana Plaza and Tazreen Fashion, political instability challenged the export earnings to grow at a decreasing rate in recent years. However, despite these challenges, the growth in RMG sector can especially be ascribed to the increase in knit and woven garments. Moreover, export earnings increased more from non-traditional markets than that of the traditional markets.

FULL REPORT

ENGLISH PRESS RELEASE

BANGLA SUMMARY

Print

Recent Trends of Growth in Agriculture, Industry and Power

Bangladesh Economic Update March 2014 

MEU March 2014

The current issue of Bangladesh Economic Update attempts to understand the growth prospect in agriculture, industry and infrastructure sectors to explain the decline of growth in total gross domestic product (GDP). Agriculture and industry together comprise half of the GDP. As a result, the recent trend of these sectors is considered to be significantly associated with the expansion of economic growth.
The growth rate in GDP has declined from 6.71 percent FY 2010-11 to 6.23 percent in FY 2011-12 and then to 6.03 percent in 2012-13, which is projected to fall below the decadal average of 6.0 percent in FY 2023- 14.
The rate of growth of agriculture and its share in GDP is decreasing. The rate of growth in agriculture came down from 5.24 percent in fiscal year (FY) 2009-2010 to 5.13 percent, and then to 3.11percent and 2.17 percent in FY2010-2011, FY2011-2012 and FY2012-2013 respectively. This declining trend in growth of agriculture sector can largely be attributed to gradual loss of cultivable land, lack of invention, adoption and dissemination of new technology, and lack of sufficient support for agricultural research and training in the country..

FULL REPORT

ENGLISH PRESS RELEASE

BANGLA SUMMARY

Contact us

16/2 Indira Road, Farmgate
Dhaka-1215, Bangladesh
G.P.O Box #2251

Tel: (+88 02) 58150684, 9110636
Fax: (+88 02)  58155804
Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.