State of the economy June 2013 released by govt
The next government will face seven major macroeconomic challenges including power and inadequate infrastructure and high cost of doing business to acceleration of the economic development. General Economics Division, the government think tank, stated this in its ‘State of the economy by June 2013’ released at a programme at the National Economic Council’s conference room in the city on Sunday.
Finance minister AMA Muhith as the chief guest, economic adviser to the prime minister Moshiur Rahman, World Bank Dhaka economist Zahid Hossain and other high government officials were present at the discussion. Planning minister AK Khandker presided over the discussion.
GED member Shamsul Alam presented the keynote paper.
The GED statement mentioned that though the overall economy in the last four years was excellent, the present and the next government would have to face seven major challenges to the development.
Broad macroeconomic challenges are poor quality and inadequate infrastructure, absence of a well-diversified economy, high cost of doing business and limited access to long-term finance, largely unskilled labour force, perceived political instability and weak port and shipping facility.
In his paper, Shamsul Alam said that the real sector comprising the gross domestic product, savings and investment, inflation, employment generation, government revenue income, implementation of annual development programme, government borrowing, balance of payment, foreign direct investment, remittance, foreign loan and grant, current account balance, foreign exchange reserves and exchange rate was favourable and excellent.
The annual average growth rate in the last four years was 6.3 per cent which was commendable compared with those of India, Pakistan and the world.
The contribution of agriculture sector to the GDP in 2006 was 21.8 per cent which turned into 18.7 per cent in 2013. But the industrial contribution to the GDP rose to 32 per cent in 2013 from 29 per cent in the 2006 financial year.
‘It indicates that the country is moving towards industrialisation,’ Shamsul Alam said.
Domestic resource generation got a tremendous boost in the last three years than any time before.
National saving hovered around 29-30 per cent while domestic savings got stuck to 19.3 per cent over the last three years, the GED statement said.
It said the inflation was also gradually decreasing in the country over the last three years.
It also mentioned that implementation rate of the annual development programme in 2013 was all-time high. Though the government borrowing increased, it still remained below 5 per cent of the GDP, it said.
Criticising the country’s media finance minister AMA Muhith said, ‘We know the information and data. But, we do not know how to use it.’
The finance minister said the country’s resources were getting limited. ‘But, we have a big problem of over population.’
‘So, we need to focus on migration and skill development of the illiterate people,’ he said.
He also mentioned that the country’s economy was also not well-diversified. ‘There is a tremendous opportunity for the software development and information technology. We need to focus on these areas too.’
-With New Age input
