Targeted 7pc growth to be achieved : Atiur

http://www.thefinancialexpress-bd.com/more.php?news_id=160684&date=2011-12-26

Targeted 7pc growth to be achieved : Atiur

Bangladesh Bank governor Dr Atiur Rahman on Sunday said the current fiscal year’s targeted 7.0 per cent economic growth would be achieved as he finds the macroeconomic indicators positive, reports UNB.

“I think the 7.0 per cent economic growth will be achieved…the overall economic determinants indicate that,” Atiur told the news agency over phone.

The central bank governor said they analysed the statistics of overall economy and collected data from rural economy that give a positive outlook.

He said the progress of overall rural economy made him optimistic over the achievement of the GDP target.

Atiur said the key determinants of macro economy remained high in the country even during the post-recession period.

He said the country saw 47 per cent growth in readymade garments (RMG) export and 20 per cent growth in remittance inflow during the last three years of the present government.

The central bank chief said the country’s foreign currency reserve stood at US$ 9.35 billion till December 11.

He said the country saw a 6.7 per cent GDP (gross domestic product) growth in the last fiscal driven by sustainable agricultural growth and strong expansion of manufacturing and service sector.

Earlier on Tuesday, Finance Minister AMA Muhith said achieving the projected 7.0 per cent economic growth might not be possible in the current fiscal year due to high import cost, spiralling inflation, downward investment flow and excessive subsidies in public spending.

“The GDP growth in the last fiscal was 6.7 per cent and in this fiscal the target is 7 per cent. But, I’m not sure where we’ll ultimately go as it depends on how we’ll manage the current problem of inflation,” he said while addressing a function on the day.

The finance minister in his recent remark mentioned factors like excessive bank borrowing by the government and high inflation rate which are hindering the targeted growth.

He voiced concern over high commodity price, subsidies in petroleum products and soaring inflation.

He also admitted that the country is in a very difficult situation with the inflation crossing the double digit.

According to Bangladesh Bureau of Statistics (BBS), the inflation crossed the double digit in March this year while it was around 11.5 per cent in the last two months.

Muhith claimed that the government had to go for excessive bank borrowing this year as the prices of electricity and fuel were not adjusted timely.

Advertisements

Comments are closed.