Major macroeconomic indicators showing positive trend: MCCI

The economy is progressing well as the major macroeconomic indicators such as per capita income, foreign currency reserve, import and export, and foreign direct investment show a strong positive trend, according to Metropolitan Chamber of Commerce and Industry (MCCI), reports BSS.
"During July-September of FY17 (Q1 of FY17), agriculture, manufacturing and services sectors have all performed well, but continuous government support of various types will be needed to sustain their growth. Infrastructure deficits and gas and power supply 
problems are now undermining the performance of all productive sectors," the trade body said in its review of 'Economic Situation in Bangladesh'.
"The government should adopt adequate steps to overcome these problems, and achieve and preserve political stability, which are essential for creating an investment-friendly climate, so crucial to achieve higher economic growth," said the MCCI.
It said the country experienced stable growth; inflation was under control; the exchange rate remained stable; and foreign exchange reserves rose to a comfortable level. The international rating agencies have given stable ratings to Bangladesh as they have done for a number of years now, it said, adding that development partners are now speaking highly about Bangladesh's recent achievements and further prospects.
In FY16, the agriculture accounted for about 15.35 per cent of its GDP and given the government's strong commitment to support the growth of agriculture with timely availability of inputs and finance, the sector is expected to perform well in the present fiscal.
It said Bangladesh has an opportunity to become Asia's manufacturing hub as the country is maintaining high export growth and has a skilled workforce. The manufacturing sub-sector grew 11.69 per cent in FY16, 1.38 percentage points higher than the previous fiscal year's 10.31 per cent, it added.
The interest rate spread in the banking sector narrowed further in the quarter under review and from 4.84 per cent in July 2016, the spread shrank to 4.80 per cent in August, and then to 4.76 per cent in September 2016, the trade body said.
In Q1 of FY17, the MCCI said the disbursement of agricultural credit and non-farm rural credit by banks increased by 13.87 per cent to Tk.3,642.94 crore from Tk.3,199.23 crore in the corresponding quarter of the previous fiscal. The recovery of these credits also increased by 18.60 per cent to Tk.3,697.71 crore in Q1 of FY17 from Tk.3,117.67 crore in the corresponding quarter of the previous fiscal year, it said.
It said the country's capital market marked a slight improvement around the end and the turnover on Dhaka Stock Exchange (DSE) hit a fresh eight and a half month high as investors injected fresh funds into the market.
Export earnings in Q1 of FY17 increased by 4.12 per cent to US$8.079 billion from US$7.759 billion in the corresponding quarter of the previous fiscal year.
Net foreign direct investment (FDI) in July-August of FY17 increased by 9.30 per cent to US$435 million from US$398 million in the corresponding period of FY16.

Major macroeconomic indicators showing positive trend: MCCI

The economy is progressing well as the major macroeconomic indicators such as per capita income, foreign currency reserve, import and export, and foreign direct investment show a strong positive trend, according to Metropolitan Chamber of Commerce and Industry (MCCI), reports BSS. During July-September of FY17 (Q1 of FY17), agriculture, manufacturing and services sectors have all performed well, but continuous government support of various types will be needed to sustain their growth. Infrastructure deficits and gas and power supply problems are now undermining the performance of all productive sectors, the trade body said in its review of Economic Situation in Bangladesh. The government should adopt adequate steps to overcome these problems, and achieve and preserve political stability, which are essential for creating an investment-friendly climate, so crucial to achieve higher economic growth, said the MCCI. It said the country experienced stable growth; inflation was under control; the exchange rate remained stable; and foreign exchange reserves rose to a comfortable level. The international rating agencies have given stable ratings to Bangladesh as they have done for a number of years now, it said, adding that development partners are now speaking highly about Bangladeshs recent achievements and further prospects. In FY16, the agriculture accounted for about 15.35 per cent of its GDP and given the governments strong commitment to support the growth of agriculture with timely availability of inputs and finance, the sector is expected to perform well in the present fiscal. It said Bangladesh has an opportunity to become Asias manufacturing hub as the country is maintaining high export growth and has a skilled workforce. The manufacturing sub-sector grew 11.69 per cent in FY16, 1.38 percentage points higher than the previous fiscal years 10.31 per cent, it added. The interest rate spread in the banking sector narrowed further in the quarter under review and from 4.84 per cent in July 2016, the spread shrank to 4.80 per cent in August, and then to 4.76 per cent in September 2016, the trade body said. In Q1 of FY17, the MCCI said the disbursement of agricultural credit and non-farm rural credit by banks increased by 13.87 per cent to Tk.3,642.94 crore from Tk.3,199.23 crore in the corresponding quarter of the previous fiscal. The recovery of these credits also increased by 18.60 per cent to Tk.3,697.71 crore in Q1 of FY17 from Tk.3,117.67 crore in the corresponding quarter of the previous fiscal year, it said. It said the countrys capital market marked a slight improvement around the end and the turnover on Dhaka Stock Exchange (DSE) hit a fresh eight and a half month high as investors injected fresh funds into the market. Export earnings in Q1 of FY17 increased by 4.12 per cent to US$8.079 billion from US$7.759 billion in the corresponding quarter of the previous fiscal year. Net foreign direct investment (FDI) in July-August of FY17 increased by 9.30 per cent to US$435 million from US$398 million in the corresponding period of FY16.