Economy
PM: Global solidarity needed for overcoming crises caused by Ukraine war
PM Sheikh Hasina has placed six proposals to overcome the crises caused by Ukraine war that has rattled the global economy and added fresh challenges to Covid19 recovery and SDG implementation process.
The Prime Minister placed the proposals at a roundtable convened by the UN Secretary-General together with the GCRG (Global Crisis Response Group) Champions on Wednesday.
She stressed the need for strong political commitment and global solidarity in finding ways to overcome the crises.
In her first proposal, the Prime Minister said it is needed to address the volatility of the global financial and economic outlook.
“The G-7, G-20, OECD, IFIs, MDBs should now scale up efforts to address the immediate concerns. These include lack of SDGs financing, limited fiscal space, declining ODA, and debt servicing,” she added.
Secondly, she said, “We commend you, Mr. Secretary General for your pivotal role in the Black Sea Grain initiative. We commit to supporting any such future initiatives for keeping the food production and delivery system out of harm’s way during conflicts.”
In the third proposal, PM referred to the need for bold and comprehensive measures to revitalize global trade and said it is imperative to ensure fair share of low and middle-income countries in global trade and export earnings.
The premier, in her fourth proposal, said that there should be increased investments in the agriculture sector of the developing countries to enhance productivity, and for effective food storage and distribution systems.
Fifthly, she said, they need to make the global architecture for climate cooperation more effective and just.
PM congratulated the UN Secretary-General for his persistent efforts which she believes have made some headway, and would hopefully arrive soon with a mutually agreeable solution.
The premier again thanked the UN Secretary-General for mobilizing the UN system to respond to the crises, saying, “The three policy briefs produced before us provide important policy directions, and we stand ready to work with other partners to advance the right policy options to emerge out of these crises.”
The Bangladesh Bureau of Statistics (BBS) has projected that the country’s economy will grow at a rate of 5.82% in the current fiscal year (FY24), ending on June 30. This provisional estimate shows a slight increase from last fiscal year’s 5.78% growth. The figure aligns closely with forecasts by the International Monetary Fund (5.7%) and the World Bank (5.6%).
In terms of per capita income, there has been a modest rise to $2,784 in the current fiscal year from $2,749 in the previous year. This estimate is based on data from the first seven months of FY24.
Initially, the government had projected a growth rate of 7.5% for the current fiscal year in the budget, but this was later revised downward to 7%.
Bangladesh’s Gross Domestic Product (GDP) at current prices has increased to $459 billion, up from $452 billion in the previous fiscal year.
Sector-wise analysis shows mixed trends. The agriculture sector is estimated to grow by 3.21% this fiscal year, down from 3.37% last year, marking a 0.16% decrease. The industry sector is projected to grow by 6.66%, down from 8.37%, reflecting a 1.71% decrease. Conversely, the services sector is expected to grow by 5.80% this fiscal year, up from 5.37% in the previous year, indicating a 0.43% increase.
The investment-to-GDP ratio remains steady at 30.98%, according to BBS data. In the agriculture sector, the estimated growth for this fiscal year is 3.21%, down from 3.37% the previous year, marking a 0.16% decrease.
Additionally, the domestic savings and national savings rates stand at 27.61% and 31.86%, respectively, for the current fiscal year. Compared to the previous fiscal year, investment increased by 0.03%, domestic savings by 1.85%, and national savings by 1.91%.
Private sector investment growth is estimated at 23.5% this fiscal year, compared to 24.18% in the previous year.
The BBS also estimated the consumption rate at 74.24% in FY24, up from 72.39% in the previous fiscal year.
Bangladesh to Host Major Roadshow in the USA to Boost Dollar Deposits
Next Friday, on May 24, Bangladesh will host a significant roadshow in the USA, featuring 30 managing directors from various domestic banks. This event aims to attract dollar deposits in response to recent fluctuations in foreign exchange rates.
A total of 45 officials, including the managing directors of these 30 banks, will travel to the USA for a special promotional program designed to increase US dollar deposits in banks via offshore accounts. This marks the first time such a large gathering of Bangladeshi bank MDs will take place abroad.
Sources indicate that commercial banks are launching special campaigns to boost the flow of dollar deposits. The program will encourage expatriates to send dollars through official banking channels. To this end, a specific event focused on Offshore Banking Fixed Deposits has been organized for expatriates at a hotel in New York.
The Bangladesh Ambassador to the United States, Mohammad Imran, will serve as the chief guest at the event. Other special guests include Muhammad Abdul Muhith, Permanent Representative of Bangladesh to the United Nations in New York; Deputy Governor Kazi Sayedur Rahman; and Md Najmul Huda, Bangladesh Consulate General in New York.
This gathering highlights the increasing interest among Bangladeshi banks in diversifying their foreign currency reserves by exploring opportunities in offshore banking.
As part of this initiative, a promotional event has been organized to encourage Bangladeshis residing in the United States to deposit dollars through offshore banking.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
You must be logged in to post a comment Login