ID :
14356
Wed, 07/30/2008 - 11:39
Auther :
Shortlink :
https://oananews.org//node/14356
The shortlink copeid
External sector marks improvement in 2007-08
DHAKA, Bangladesh, July 30 (BSS) - Bangladesh enjoyed improved external sector viability in fiscal (FY) 2007-08 with relatively stable exchange rate, positive current account balance, and higher foreign exchange reserves exceeding US$ 6 billion at the end ofthe fiscal.
The country's export earnings also marked a growth of 15.3 percent during July-May of FY 2007-08, the Bangladesh Bank datashows.
The 12-month average Consumer Price Index (CPI) inflation was 7.20 percent in FY 2007-08 and rose to a high of 10.00 percent in March 2008 and then declined to 9.87 percent in May 2008. The persistent rise in inflation during most of the period of FY 2007-08 was contributed by both internal shocks and externaldevelopments, the BB data shows.
The inflation in Bangladesh moved to a double digit level only temporarily in March 2008 compared with the persistently rising inflation at double digit level in major South Asiancountries, a recent review of BB said.
The government raised price of compressed natural gas (CNG) in June 2008 and prices of fuel oil and urea fertilizer in July2008, the review said.
While the impacts are yet to be seen, these adjustments may somewhat push up the point to point inflation temporarily but, with expected positive supply response of the real sector to policy measures of the government and BB the impact of the risemay be avoided, the review added.
Despite a robust import growth and widening trade deficit, higher external aid flow and healthy growth in workers' remittances provided a cushion to the external sector balance, the review said and expected that with pursuit of prudent policies to maintain the existing increasing trend in exports and remittances, the country's external sector is likely to remainstable in FY 2008-09.
Among the monetary aggregates, the growth of broad money (M2)was 17.5 percent in May 2008 down from 18.3 percent in May 2007.
Private sector credit increased by 24.5 percent on year-on- year basis in May 2008 (22.3 percent during July-May FY08) comparedwith 15.6 percent over the same period in the previous year.
Bank advance by economic purpose in end-March 2008 shows that a significant share of advances 27.2 percent went to industry,24.7 percent to working capital and 18.7 percent to trade.
The growth of reserve money (RM) declined in May 2008, 17.3 percent year-on-year basis compared with 22.8 percent in May 2007. Despite this, loans and advances from BB increased significantly by 63.8 percent reflecting BB's policy response to ensure adequate credit flow to productive sectors, the reviewadded.
BB refinance against agricultural credit and SME loans playeda key role in stimulating and expanding domestic supply response.
In addition, BB's refinance scheme for low cost housing was alsoput in place in FY 2007-08.
The country's export earnings also marked a growth of 15.3 percent during July-May of FY 2007-08, the Bangladesh Bank datashows.
The 12-month average Consumer Price Index (CPI) inflation was 7.20 percent in FY 2007-08 and rose to a high of 10.00 percent in March 2008 and then declined to 9.87 percent in May 2008. The persistent rise in inflation during most of the period of FY 2007-08 was contributed by both internal shocks and externaldevelopments, the BB data shows.
The inflation in Bangladesh moved to a double digit level only temporarily in March 2008 compared with the persistently rising inflation at double digit level in major South Asiancountries, a recent review of BB said.
The government raised price of compressed natural gas (CNG) in June 2008 and prices of fuel oil and urea fertilizer in July2008, the review said.
While the impacts are yet to be seen, these adjustments may somewhat push up the point to point inflation temporarily but, with expected positive supply response of the real sector to policy measures of the government and BB the impact of the risemay be avoided, the review added.
Despite a robust import growth and widening trade deficit, higher external aid flow and healthy growth in workers' remittances provided a cushion to the external sector balance, the review said and expected that with pursuit of prudent policies to maintain the existing increasing trend in exports and remittances, the country's external sector is likely to remainstable in FY 2008-09.
Among the monetary aggregates, the growth of broad money (M2)was 17.5 percent in May 2008 down from 18.3 percent in May 2007.
Private sector credit increased by 24.5 percent on year-on- year basis in May 2008 (22.3 percent during July-May FY08) comparedwith 15.6 percent over the same period in the previous year.
Bank advance by economic purpose in end-March 2008 shows that a significant share of advances 27.2 percent went to industry,24.7 percent to working capital and 18.7 percent to trade.
The growth of reserve money (RM) declined in May 2008, 17.3 percent year-on-year basis compared with 22.8 percent in May 2007. Despite this, loans and advances from BB increased significantly by 63.8 percent reflecting BB's policy response to ensure adequate credit flow to productive sectors, the reviewadded.
BB refinance against agricultural credit and SME loans playeda key role in stimulating and expanding domestic supply response.
In addition, BB's refinance scheme for low cost housing was alsoput in place in FY 2007-08.
