Bangladesh bags record FDI in 2011 fiscal, exports rise slightly, inflation on double digit

bdnews24.com Thu, Jul 5th, 2012 4:07 pm BdST

Bangladesh received a record $1.13 billion of foreign direct investment (FDI) last year, the Board of Investment has said.

The FDI in 2011 was 24.42 percent higher than the previous year.

Releasing the ‘World Investment Report 2012’ on Thursday, Executive Chairman of the Board S A Samad said, “We’ve never received such an amount of Foreign Direct Investment.”

He said Bangladesh received $1.08 billion FDI in 2008 due to a boost in the telecom sector, he said.

Of last year’s FDI, $271 million was invested in the garments sector, $249.3 million in banking sector, $238.2 million in fuel sector and $18.09 million in the telecom sector.

Prof Dr M Ismail Hossain of the Department of Economics of Jahangirnagar University prepared the report on behalf of the Board.

 

Exports up, yet short of target

July 5 (bdnews24.com) — Last fiscal (2011-12) saw over 6 percent rise on export earnings than the year before yet it fell short of the growth target.

In this context the government fixed a 14.50 percent higher or $ 28 billion export target for the new fiscal (2012-13).

A meeting held at the Commerce Ministry on Thursday fixed the fresh export target after scrutinising last year’s data.

After the meeting, Commerce Minister Golam Mohammad Qader said earning from export was over $ 24.41 billion in the last fiscal against the target of $ 26.5 billion.

The earning was 6.5 percent higher than the previous fiscal (2010-11). But it fell short of the target by 7.86 percent, he added.

The export income in 2010-11 fiscal was over $22.92 billion.

“Export earnings went on a down trend due to the economic recession in Europe and USA. However, the situation will not be the same this year,” said the minister.

He said the new export target was fixed after evaluating the situation prevailing over the last few years and holding discussion with business organisations.

GM Qader also said that earning from garment exports was low in the last fiscal compared to what the sector fetched the year before.

Following the meeting, Export Promotion Bureau (EPB) said the new export target was fixed after examining issues like existing global economic recession, exchange rate, increasing production cost and stiff competition in the international market.

According to a report released by EPB, 21 of the 44 Bangladesh missions achieved their export target during the last fiscal.

The meeting was also attended by Commerce Secretary Golam Hossain, EPB Chairman Shubhashish Basu, representatives from FBCCI and different business chambers and trade associations and high officials of the ministry and EPB.

 

Inflation stayed in double digits last fiscal

Jul 5 (bdnews24.com) — Average annual inflation was in double digits in the just-concluded fiscal, though it was lower in the year before.

According to the Bangladesh Bureau of Statistics (BBS), the average inflation stood at 10.62 percent at the end of the last fiscal, in June 2012.

The average annual inflation was 8.8 percent in the previous fiscal (2010-11). The government had targeted to bring the rate down to 7.5 percent.

In the month of June this year, the rate of inflation was 8.56 percent on a point-to-point basis. It was 9.15 percent in May and 9.93 percent in April.

BBS Director General Golam Mostafa Kamal told the press of the inflation statistics at its headquarters on Thursday.

“Inflation eased as prices of rice and other food items had decreased,” said Kamal.

According to the data presented, food inflation stood at 7.08 on a point-to-point basis in the last month of the last fiscal. The rate was 7.46 percent in May.

Inflation in sectors other than food was 11.72 percent, which was 12.72 percent in the previous month.