Economy
PM Sheikh Hasina Plans Diplomatic Visits to India, China
Prime Minister Sheikh Hasina is scheduled to undertake bilateral visits to New Delhi and Beijing within the next three months, marking her initial such engagements following the January 7 national election. These visits aim to strengthen Bangladesh’s ties with India and China, two of Asia’s prominent economic powers.
After the formation of the new government, Prime Minister Hasina attended the Munich Security Conference in Germany in February, showcasing her active participation on the global platform.
Diplomatic sources suggest that PM Hasina’s visit to India is slated after the conclusion of the neighboring country’s national election, which spans seven phases from April 19 to June 1, with vote counting set for June 4.
Pre-election polls indicate a favorable outcome for the coalition led by Indian Prime Minister Narendra Modi, who is widely anticipated to secure reelection.
Foreign Minister Hasan Mahmud confirmed the planned visit to India, indicating it would occur post-election, although specific dates are yet to be finalized.
In January, Prime Minister Modi extended warm congratulations to PM Hasina on her electoral victory, expressing optimism for the continued strengthening of the historically close ties between India and Bangladesh.
The last bilateral engagement between PM Modi and PM Hasina took place during the G-20 Leaders Summit in September 2023, where Bangladesh was the guest country.
PM Modi is anticipated to extend invitations to leaders from South Asian and BIMSTEC countries for his swearing-in ceremony, fostering regional cooperation.
Moreover, PM Hasina’s upcoming visit to China in July was highlighted during a meeting with Chinese Ambassador Yao Wen, who reiterated China’s commitment to increasing investment in Bangladesh and enhancing bilateral relations.
Ambassador Yao underscored the significance of the visit in advancing trade, investment, and cultural exchange, aligning with Bangladesh’s aspirations for “Vision 2041” and the realization of a “Smart Bangladesh.”
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.
