Economic Growth Slowing Down of Bangladesh

Looking at events like rationalization of capital market, consolidation of assets value, drop by retail sales, retardation of gross domestic product growth within the neighbor countries and, additional significantly, economic meltdown in most of our export destinations one might feel tempted to raise a question is that the Bangladesh economy swiftness down?

With intensifying political conflicts reception at the side of international uncertainties our economists, policy planners, business leaders all appear to worry with economic and business way forward for Bangladesh, a minimum of within the close to term. Question is being raised-whether there's a symbol for more economic squeeze? Four years past, most of them welcome the new 'grand alliance' government with a hope of corrections within the economic management method that are owed for a protracted time. However, several of them appear to own either begin or within the method of starting off of their 'day dreams'.

Bangladesh had issues in making congenial atmosphere with relevance a market-led growth owing to the shortage of acceptable policy directives, poor infra-structure, shortage of practiced personnel and capital, inefficient in addition as shallow cash markets, frequent natural calamities, political unrest, particularly on the eve of power transition. Despite all the issues we tend to had five.0 and per cent economic process throughout last twenty years some. To be additional precise, we've seen half dozen.7 per cent growth within the yr 2005-06. Despite political turmoil, labour unrest within the clothes belt, retardation within the government and political changes, Bangladesh achieved growth of 6.5 per cent in profit oriented organizations 2006-07 too. Progress or growth tendency is quite smart in last 3 financial years too, with a hope that things ought to be able to move forward with improvement within the people's getting power. The analysts took the upper growth momentum as an indication of the economy nearing a embark stage.

What is happening within the current commercial enterprise year? ar we tend to doing alright? What can we expect to happen? Once can the individuals get to check the results of long-awaited economic and political corrections? Will Bangladesh get into the mechanical phenomenon of seven and per cent gross domestic product growth? Is that the growing external integration serving to us? is that the growth any manner nearer making certain to making sure} distributive justice? Or is it a minimum of ensuring adequate cash to support more investment?

Though with the expansion momentum of last 2 monetary years, our policy planners have projected a rate of seven.2 per cent throughout the present commercial enterprise, a number of the economists are anticipating a reversal within the rate for the primary time in many years. Few of them even apprehend that the expansion rate may well be around five.0 per cent, that we tend to after all do not pray or hope for. Our export is up in initial eight months of this commercial enterprise by quite nine per cent. Inward remittal growth grew by virtually nineteen per cent throughout the similar amount. However, the import declined by thirteen and per cent with capital machinery import happening by virtually twenty three per cent and industrial raw materials by five per cent. Revenue realization was behind the target by Bangladeshi monetary unit twenty five billion within the initial seven months of the commercial enterprise. Capital market indices fluctuated at frequent intervals and will not show any consolidation nonetheless. Industrial sector is showing sluggish growth. Domestic demand is additionally down. Sales at the little and medium enterprises are reportedly have reduced by 0.5 in recent days. Recent political uncertainty is apparently motion a heavy threat to our native in addition as 'global offer chain'. If this continues, we've to face more 'music' within the returning days. With continuous strikes for consecutive forty eight hours the lag impact may well be quite shocking

Our export target for article of clothing export during this commercial enterprise is ten.61 billion greenback. Within the initial seven months the revenue from the export of constant was USD 5.92 billion. Target for woven export during this commercial enterprise is 10.92 billion greenbacks and through the primary seven months earning was USD 6.12 billion. Continuous political unrest Associate in Nursing clashes on the streets have earned ‘bad name' for a decent loading handling port or a minimum of an operative port. With rising turmoil within the political thinking, with unsatisfactory infrastructure and policy support profession has developed a sense that they need been 'pushed' into the corner. Recent debacle within the banking sector with attacks on few bank branches and ATM booths together with Islami Bank Bangladesh is additionally reportedly contributory towards the chaos, confusion, tension, retardation or loss of confidence.

The challenge for the govt. is so to win the trust of the profession. Businessmen ought to be allowed to manage their 'money' with ease and build their own investment choices on business justifications. It appears they need determined to travel political snarl-up with relevance next election.

slow or perhaps stop investments for the present, on the idea of realities on the bottom or the perceived ones. Within the past they'd infrastructure or energy or land acquisition issues; currently this has become 'unstable' atmosphere,

We need additional activities from our growth drivers together with regulative agencies, towards 'confidence building', not surplus words warming the complete system, and making doubts concerning integrity of the aim. Notwithstanding what happens, we tend to should guarantee continuous operation of our native and international offer chain. This 'supply chain' if discontinuous for few days at a stretch, would equivalent to not solely losing cash for the present; several export orders are canceled, with additional 'repeat orders' not returning, if not for years, a minimum of several months.

The 2006 disturbances, little doubt secured the 'doctrine of necessity' to play a major role to 'ease up' the provision chain. We tend to should be able to scan the `signs on the wall' and check out to repair things before it's too late. underneath no circumstances a transition economy like Bangladesh will afford to compromise with its' growth imperatives, notwithstanding World Health Organization is in power.