Economy
Inflation in Developing Asia to Approach Pre-Pandemic Levels as Fuel and Food Prices Decline
Asian Development Bank (ADB) reports that the higher estimate of 6% for fiscal 2022-2023 reflects a robust performance in net exports, with imports declining more than anticipated and export growth remaining relatively stable. The manufacturing sector, supported by favorable government policies, played a significant role in driving growth across businesses of all sizes. Although crop losses due to natural disasters persisted, they were partially mitigated through subsidies, incentives, and other measures. The service sector experienced positive growth, primarily attributed to increased activities in warehousing, support services, healthcare, and social services. On the demand side, both public consumption and investment surpassed expectations, contributing to overall economic expansion. ADB maintains a growth forecast of 6.5% for fiscal year 2024, unchanged from the previous estimate.
ADB also maintains its growth projection for developing economies in Asia and the Pacific at 4.8% this year, emphasizing the continued support from robust domestic demand. The region’s inflation is expected to decline further, approaching pre-pandemic levels, as fuel and food prices decrease, according to the Asian Development Outlook (ADO) report released in July 2023. Inflation for developing Asia is anticipated to be 3.6% this year, lower than the April forecast of 4.2%. However, the inflation outlook for 2024 has been revised slightly upward to 3.4% from the previous estimate of 3.3%.
The reopening of the People’s Republic of China (PRC) is playing a significant role in bolstering the region’s growth. The PRC’s economy is projected to grow by 5.0% this year, reflecting unchanged figures from the April forecast, primarily due to strong domestic demand in the services sector. However, the demand for Asia’s exports, particularly electronics and manufactured goods, is slowing down as major advanced economies implement monetary tightening measures, impacting overall economic activity. Consequently, the growth forecast for the region in the following year has been marginally revised downward to 4.7% from the previous estimate of 4.8% in April.
ADB Chief Economist Albert Park acknowledges the steady pace of recovery in Asia and the Pacific from the pandemic. He highlights the driving forces of growth, including domestic demand, robust services activity, and the resurgence of tourism in many economies. However, challenges remain in terms of weak industrial activity and exports. Additionally, the outlook for global growth and demand in the coming year has worsened.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
