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Sunday, 10 May 2009 - Bangladesh growth seen at nearly 6 pct
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    Read more with google mobile : Bangladesh growth seen at nearly 6 pct

    Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Bangladesh growth seen at nearly 6 pct AFP - Sunday, May 10 DHAKA (AFP) - - Bangladesh's economy will grow by nearly six percent this fiscal year with the country escaping the brunt of the global economic meltdown, the government forecast Saturday, but tougher times loom. ADVERTISEMENT Experts said the impoverished country would face the full impact of the worldwide downturn in the upcoming financial year starting in July as export shipments keep slowing. The forecast growth of 5.9 percent for this fiscal year to June is below an earlier government estimate of 6.5 percent but higher than the 4.5 percent projected by the World Bank. "Our economy has done relatively well despite the global meltdown. Remittance inflows have been robust and agriculture also did better," Ikramul Haq, head of the country's national statistics office, told AFP. "Exports have been hit by the global economic recession but still performed better than many other countries in Asia and across the world," he added. Remittances and exports have been Bangladesh's main growth drivers for the past four years when the economy expanded by an average of over six percent annually, marking the strongest growth spell since independence in 1971. The final growth figure will be announced later this year. The country's gross domestic product increased by 6.2 percent in the last fiscal year. In the first 10 months of the fiscal year to April, Bangladeshis working abroad sent home 7.9 billion dollars -- 1.5 billion dollars, or 23 percent, more than during the same period in the last fiscal year, official data shows. Exports expanded by 14.5 percent to 11.63 billion dollars between July and March but the strongest growth came before October when the global downturn started hammering Bangladesh's main Western export markets. Good weather meant agriculture continued its recovery after the country was hit by a major flood and a devastating cyclone in late 2007 that triggered double-digit food inflation for much of 2008, Haq said. "We did quite well this year but the outlook for the next fiscal year is not good," said economist Zaid Bakht, research head of the Bangladesh Institute of Development Studies. "Exports are falling due to the global recession while loans to industries and the import of raw materials and machinery have also plunged, signalling a rapid near-term slowdown in industrial activity," he said. Exports, which are dominated by sales of garments, grew by 40 percent in the first quarter to September. But since the second quarter, the decline has been steep, prompting the government to unveil a half-billion dollar stimulus package last month to try to save millions of low-paid jobs. The garment industry employs 2.5 million workers, mostly women, who account for more than 40 percent of Bangladesh's industrial workforce. "Export sluggishness will continue well into the next fiscal year as our main markets -- the European Union and North America -- show no revival signs," said Mustafizur Rahman, head of the think-tank Center for Policy Dialogue. "Growth could decelerate further if the weather does not behave well," he said, referring to floods and cyclones that frequently hit the country. Finance minister A.M.A. Muhith last week said he would roll out a budget next month that would boost domestic spending and unveil another industry stimulus package to combat the global recession. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: China's Economy Australia braces for unpopular budgetAFP - Sunday, May 10 U.S. economic growth seen resuming in third quarterReuters - Sunday, May 10 Bangladesh growth seen at nearly 6 pctAFP - Sunday, May 10 NYC mayor, NY speaker call for ground zero summitAP - Sunday, May 10 Related Articles: Business Exxon begins drilling at Point ThomsonAP - Sunday, May 10 Hicks' loan default casts shadow on Rangers, StarsAP - Sunday, May 10 Obama: Send me credit card legislation this monthAP - Sunday, May 10 Talks between Diageo, United Spirits still on: reportAFP - Sunday, May 10 GMAC could get $7.5 bln from U.S. next week: reportReuters - Sunday, May 10 Enlarge Photo Bangladesh growth seen at nearly 6 pct Related Photos Slideshow Full Photo Coverage: Business & Economy Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Obese young men have less hope of marriage: study British store admits it boobed in bra row Geithner's warning on speed of economic recovery Court okays breast removal for transsexual teen: report Murdoch leads charge to get readers to pay online View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! 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