BSS, Dhaka :
Bangladesh Bank (BB) projected a higher growth in the coming year 2015 driven by substantial rise in export earnings, vibrant domestic demands, enhanced digital technology and strong foreign exchange reserves coupled with steady inflow of remittance.
Like previous year, the central bank released Tuesday a review on the country’s economy titled “The Economy in 2014 and Looking Forward?” putting high hopes that the macroeconomic stability would be improved to a greater extent next year.
“If the stimulation in domestic demand that the economy experienced at the fag end of 2014 is continued, earning a growth rate of 6.5 percent or more will not be difficult in 2015,” BB said in its annual review.
The review, however, cautioned about the inflationary pressure from implementation of the new pay scale and a possible oil price hike because of because of political tension in the Middle East, but said that BB would keep these issues in mind and design the upcoming monetary policy for expediting growth prospect. Additionally, it will help boost investment confidence by improving banking governance.
“One of the main targets of the financial sector will be to increase the purchasing power of the lower and middle-income people,” the review said.
In the review, the central bank said that it would also encourage the culture of disbursing quality loans with extending facilities to the credible borrowers while taking stern action against the loan defaulters.
The review said political hartals and blockades took a heavy toll on investment in 2013, but investment began to accelerate around the end of 2014 and excess liquidity of dollar and Taka in the local market began to evaporate, suggesting a revival of trade and commerce.
“The last period of 2014 marked a new momentum in consumer and business confidence. Imports and exports reflected an upward trend. So did remittances, and importantly, foreign currency reserves registered a new record,” it said.
According to the review, the economy achieved a respectable 6.12 percent growth rate against all political odds when the per capita income rose from $1044 in 2013-14 financial year (FY14) to $1190 in financial year 2014-15 (FY15).
Further noticeable was inflation’s slow but steady descent, which helped expedite consumption and investment decisions. A cautious stance of the central bank in money supply helped achieve these satisfactory numbers of growth and inflation.
Imports in FY14 mounted to $37 billion, which is expected to grow at around 12 percent in the coming 2014-15 financial year (FY15) when remittances are likely to grow at 10 percent.
“The recent composition of imports, where capital goods, machinery, and other production inputs dominate, signals the future empowerment of the economy. Since imports outstripped exports, the resulting current account deficit bodes well for future growth as long as the deficit is at a tolerable level,” the BB noted in the review.
It said the overall employment has also picked up with poverty sliding down. In addition to achieving self-sufficiency in food production, Bangladesh has been able to export rice for the first time in history.
Bangladesh Bank (BB) projected a higher growth in the coming year 2015 driven by substantial rise in export earnings, vibrant domestic demands, enhanced digital technology and strong foreign exchange reserves coupled with steady inflow of remittance.
Like previous year, the central bank released Tuesday a review on the country’s economy titled “The Economy in 2014 and Looking Forward?” putting high hopes that the macroeconomic stability would be improved to a greater extent next year.
“If the stimulation in domestic demand that the economy experienced at the fag end of 2014 is continued, earning a growth rate of 6.5 percent or more will not be difficult in 2015,” BB said in its annual review.
The review, however, cautioned about the inflationary pressure from implementation of the new pay scale and a possible oil price hike because of because of political tension in the Middle East, but said that BB would keep these issues in mind and design the upcoming monetary policy for expediting growth prospect. Additionally, it will help boost investment confidence by improving banking governance.
“One of the main targets of the financial sector will be to increase the purchasing power of the lower and middle-income people,” the review said.
In the review, the central bank said that it would also encourage the culture of disbursing quality loans with extending facilities to the credible borrowers while taking stern action against the loan defaulters.
The review said political hartals and blockades took a heavy toll on investment in 2013, but investment began to accelerate around the end of 2014 and excess liquidity of dollar and Taka in the local market began to evaporate, suggesting a revival of trade and commerce.
“The last period of 2014 marked a new momentum in consumer and business confidence. Imports and exports reflected an upward trend. So did remittances, and importantly, foreign currency reserves registered a new record,” it said.
According to the review, the economy achieved a respectable 6.12 percent growth rate against all political odds when the per capita income rose from $1044 in 2013-14 financial year (FY14) to $1190 in financial year 2014-15 (FY15).
Further noticeable was inflation’s slow but steady descent, which helped expedite consumption and investment decisions. A cautious stance of the central bank in money supply helped achieve these satisfactory numbers of growth and inflation.
Imports in FY14 mounted to $37 billion, which is expected to grow at around 12 percent in the coming 2014-15 financial year (FY15) when remittances are likely to grow at 10 percent.
“The recent composition of imports, where capital goods, machinery, and other production inputs dominate, signals the future empowerment of the economy. Since imports outstripped exports, the resulting current account deficit bodes well for future growth as long as the deficit is at a tolerable level,” the BB noted in the review.
It said the overall employment has also picked up with poverty sliding down. In addition to achieving self-sufficiency in food production, Bangladesh has been able to export rice for the first time in history.
