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Economy
Govt sets GDP growth target to 6.5% for FY23
December 20, 2022
· The finance ministry on Tuesday proposed lowering the target gross domestic product (GDP) growth rate to 6.5% for the fiscal 2022-23, in line with the repeated predictions of economists around the country.
· Amid the dual threats of the difficult post-Covid pandemic recovery period and the global turmoil induced by the Russia-Ukraine war, economists had warned that meeting such an ambitious target was not possible.
· Organisations like the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) also hedged bets on a 6%-6.6% growth in various reports, going against government estimates.
· In the meantime, regulatory initiatives like control in currency supply and controlled import of goods have been taken to reduce domestic demand.
· Load shedding has also been scheduled in efforts of fuel savings.
· The government is reducing the growth target this time due to multifaceted controls and contractionary initiatives.
· In the meeting, the size of the current budget was reduced from around BDT 6,780 bn to BDT 6,580 bn.
From: https://www.tbsnews.net/economy/govt-slashes-gdp-growth-target-65-fy23-555222
Export stands out in turbulent year
December 19, 2022
· In 2022, Bangladesh retained its position as the second-largest apparel exporter globally after China.
· "The demand for locally made garment items is still very high despite higher inflation in Europe," said Senior Commerce Secretary Tapan Kanti Ghosh earlier.
· Analysts attribute the stellar export performance to the US-China tariff war, competitive prices, and the recent improvements in workplace safety conditions.
· This year, Bangladesh also cemented its position as a reliable supplier of apparel items as the country has been among a few nations that have kept its factories open since the coronavirus pandemic hit the world in March 2020.
· Throughout the crisis, local suppliers exported more to non-traditional markets such as India, China, Japan and Russia, along with traditional destinations, namely the EU, the US and Canada.
· Bangladesh is also on its course to becoming a global manufacturing hub for value-added high-end garment items – a prospect that may go on to help the country boost export receipts.
· At the end of the current year, Bangladesh's share in the global apparel market will cross 7.5% from the existing 6.4%.
From: https://www.thedailystar.net/business/economy/news/export-stands-out-turbulent-year-3201176
Boro farmers getting BDT 1.70 bn incentive
December 20, 2022
· The government is extending BDT 1.70 bn as incentive to boost cultivation and production of boro paddy.
· Under the incentive, around 2.7 mn farmers across the country are getting free seeds and fertilisers.
· The incentives are given in three categories from the agriculture rehabilitation support fund, the agriculture ministry said in a statement today.
· Each of around 1.5 mn farmers will be provided with 2 kilogrammes of paddy seed under a BDT 820 mn incentive package to increase production of hybrid paddy.
· Some 12 lakh farmers will get benefit under a BDT 730 mn package for increased production of high-yielding paddy varieties.
· BDT 150 mn will be disbursed as incentive for planting and harvesting of paddy at the same time, under which 110 blocks will be established in 61 districts.
· BDT 1.37 mn will be spent for each of the 50-acre blocks, the agriculture ministry said.
From: https://www.thedailystar.net/business/news/boro-farmers-getting-tk-170-crore-incentive-3200741
https://today.thefinancialexpress.com.bd/last-page/tk-17b-incentive-for-boro-farmers-1671560254
Banking
Deposits in NBFIs stood at BDT 416 bn in September
December 19, 2022
· Deposits in the country’s non-bank financial institutions dropped by 1.19% or BDT 5 bn in September compared with that of June as the sector is suffering from the customers’ trust deficit.
· Bangladesh Bank data showed that the deposits in the NBFIs fell to BDT 416 bn at the end of September quarter of 2022 from BDT 421 bn in deposits at the end of June quarter.
· The NBFIs suffered a deposit contraction at a time when the banks posted growth in deposits in the same period.
· Fund withdrawals by banks from the NBFIs along with the absence of public confidence were the reason for the liquidity crisis in the sector, they said.
From: https://www.newagebd.net/article/189522/deposits-in-nbfis-drop-amid-low-public-confidence