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.
Chief Adviser Prof Muhammad Yunus on Thursday paid tribute to the Armed Forces Division by placing a floral wreath at its headquarters.
Prof Yunus, who visited the division as part of his official duties, laid the wreath to honor the sacrifices and dedication of the members of the Armed Forces.
Following the wreath-laying ceremony, he signed the visitor’s book.
Chief Election Commissioner (CEC) Kazi Habibul Awal, along with four other election commissioners, announced their resignation during a press conference today at the Election Commission (EC) building. The resignation follows growing speculation and pressure.
CEC Awal stated, “In this changed situation, I and other commissioners have decided to step down. We’re handing over our resignation letters to the EC Secretary to send it to the President.” After submitting the letters, the CEC and some commissioners quickly left the premises, with no clear explanation for the absence of two election commissioners.
The resignations come amid increasing unrest tied to the registration of political parties such as Nagarik Oikya and Gono Odhikar Parishad. Sources revealed the CEC felt unsafe due to aggressive behavior from activists, prompting the decision to step down.
Protesters outside the EC building hurled shoes at vehicles carrying Election Commissioners Rashida Sultana, Md Alamgir, and Anisur Rahman as they left. Meanwhile, preparations for their exit had already been underway, with the commissioners reportedly relocating personal belongings from their offices.
The commission, appointed in February 2022 for a five-year term, had previously expressed confusion over demands for their resignation, maintaining they had conducted fair elections. However, internal discussions led to the collective decision to resign earlier than expected.
The government will now purchase LNG from the international spot market through open tender instead of negotiation.
Cabinet Committee on Economic Affairs (CCEA) in a meeting on Wednesday in principle approved a proposal in this regard.
Adviser of the interim government for Finance Dr. Salehuddin Ahmed, who presided over the meeting, said that the government will procure LNG through open tender.
The Energy and Mineral Division of the Ministry of Power, Energy and Mineral Resources placed the proposal where it sought approval to import LNG from 23 listed companies in the international spot market.
The adviser said that though such 23 companies were enlisted by the previous Awami League government and signed Master Sales and Purchase Agreement, they will remain unchanged.
He said that instead of applying the Speedy Increase of Energy and Power Supply (Special) Act 2010, the interim government will follow the Public Procurement Rules 2008 to ensure the competitive bidding process.
“We don’t want to change them as we wanted to import LNG quickly, ensuring proper competition among the suppliers,” he told reporters.
Committee also approved another proposal in principle to sign a contract to import urea fertiliser for the 2024-25 fiscal year from Fertiglobe Distribution Limited, UAE, on a G-to-G basis.
Meanwhile, the Cabinet Committee on Government Procurement (CCGP) in a meeting, presided over by the Adviser for Finance, approved 3 proposals for import of lentil and fertiliser.
As per the proposal, the Trading Corporation of Bangladesh will procure 10,000 metric tons (MT) of lentil from local firm Sahara Enterprise at a cost of Tk 98.20 crore with each kg priced at Tk 98.20.
The Commerce Ministry which moved the proposal on behalf of the TCB in the meeting mentioned in the proposal that the supplier firm was selected through open tender.
The CCGP approved two separate proposals of the Industries Ministry under which Bangladesh Chemical Industries Corporation will import 30,000 MT of bulk granular urea fertiliser from Fertiglobe Distribution Limited, UAE, under state to state contract at a cost of Tk 121.48 crore.
Each metric ton of fertiliser will cost $343.17.
Another 30,000 MT of bagged granular urea fertiliser will be procured from the local Karnaphuli Fertilizer Company Limited (Kafco) at a cost of Tk 116.99 crore with each metric ton costing $330.50.
