GDP size up, growth down as new base year takes effect
The economic growth rates posted in recent years were revised downwards but the size of the economy expanded thanks to a new base year adopted by the Bangladesh Bureau of Statistics (BBS). For example, Bangladesh’s gross domestic product (GDP) grew at a pace of 8.15 per cent in fiscal 2018-19, the highest on record, as per the base year 2005-06. But the growth rate fell to 7.88 per cent as per the new base year of 2015-16. According to the new base year, Bangladesh was an economy of Tk 34,840 billion in current prices in FY21, up 15.7 per cent from Tk 30,111 billion as per the previous base year. In constant prices, it stood at Tk 27,939 billion in FY21 as per the new base year, up from Tk 12,072 billion as per the old base year, according to a document of the BBS. In terms of dollars, the GDP size stood at $409 billion in the last fiscal year if Tk 85 per USD exchange rate is taken into account. Per capita income rose to $2,554 in FY21 as per the new calculation, which was $2,227 as per the old one. The new base year uses data on about 144 crops while computing the contribution of the agriculture sector to the GDP, which was 124 crops in the previous base year. The gross value addition by the agriculture sector rose to Tk 4,061 billion in current prices in the last fiscal year, up from Tk 3,846 billion in the old estimate. In the new base year, the gross value addition of the sector stood at Tk 11,362 billion in FY21 while it was Tk 8,944 billion as per the old base year. The sector’s value addition increased to Tk 18,098 billion in FY21 compared to Tk 16,144 billion from the old base year. In a positive development, the investment-GDP ratio rose to 30.76 per cent in the last fiscal year compared to 29.92 per cent in the old base year of 2005-06.
Trade summit yields $1.16b in intended investment
A trade summit meet Bangladesh just hosted yielded investment interests worth US$1.16 billion in various sectors of the country from investors, besides spotting potential exports. The second-major outcome of the weeklong Bangladesh Trade and Investment Summit 2021 is that 26 products have been identified as potential exports from the country that is expected to help in much-needed export diversification to widen its slim export basket. DCCI president Rizwan Rahman Monday shared the outcomes of the summit wherein 552 local and foreign companies from 38 countries participated in 369 B2B (business-to-business) sessions. But averaging duty structure on both sides is a critical thing before going for FTA, he said, adding that “the average duty is around 15 per cent while the average duty structure in countries with whom we are planning to sign FTA is hovering in-between 3.0 per cent and around 6.0 per cent”. Regarding the businesses plea to replicate successful RMG model to enhance competitiveness in other potential sectors, the commerce secretary said bond facility plays a key role behind apparel industry’s boom here.
Remittance flow drops to $1.65b in Oct
The flow of inward remittances dropped further in October after money transfers through informal channels such as hundi resurfaced after a lull caused by the coronavirus pandemic. The money sent home by Bangladeshis working abroad amounted to $1.65 billion in October 2021, down by $79 million from the previous month’s level, according to the central bank’s latest statistics. In September last, the remittances stood at $1.73 billion. It was $2.10 billion in October 2020. The flow of inward remittances dropped by nearly 20 per cent to $7.05 billion during the July-October period of the current fiscal year (FY), 2021-22 from $ 8.81 billion in the same period of the previous fiscal, the Bangladesh Bank (BB) data showed. Currently, there is a gap of around Tk 4.0 between the exchange rate of cash dollar in the open market, known as kerb market and telegraphic transfer (TT) clean rate for remitters. The banks offered an average rate of Tk 84.7481 to the remitters for TT on Monday, according to the daily report of Bangladesh Foreign Exchange Dealers’ Association.
DSE daily turnover hits 3.5 months low
Stocks dropped slightly on Monday, with turnover hitting three and a half months low on the Dhaka Stock Exchange (DSE), as investors mostly followed cautious stance amid a volatile market trend. Turnover came down to Tk 12.75 billion on the country’s premier bourse, in a further decline by 22 per cent over the previous day’s tally of Tk 16.37 billion. It was the lowest single-day transaction since July 19 this year, when turnover was recorded at Tk 12.64 billion. Following the previous day’s steep fall, the market moved between positive and negative several times before falling below 7,000-mark further after four trading days. At the end of the session, DSEX, the prime index of the DSE, went down 2.90 points or 0.04 per cent to settle at 6,998, after shedding more than 61 points in the previous day. However, two other indices edged up with the DSE 30 Index, comprising blue chips, gaining 5.10 points to finish at 2,625 and the DSE Shariah Index (DSES) advanced 3.96 points to close at 1,474. Major sectors saw mixed performances with financial institutions witnessing the highest correction of 2.0 per cent, followed by cement with 1.30 per cent, telecom 1.20 per cent and banking 0.70 per cent.
Krishibid Feed makes debut on SME platforms tomorrow
Trading of Krishibid Feed Ltd will commence tomorrow (Wednesday) on the SME Platforms of Dhaka Stock Exchange and Chittagong Stock Exchange. Krishibid Feed will be the eighth listed company under the SME Platforms on both the bourses introduced earlier to ensure long term financing for the SME sector. DSE trading code for Krishibid Feed is “KFL” and company code is 69004 while the CSE scrip ID is 32603 and scrip code is “KFL”. The Bangladesh Securities and Exchange Commission (BSEC) allowed the company’s proposal for raising Tk 220 million through qualified investor offer (QIO) on September 5 as a small and medium enterprise (SME). The subscription for shares of the company by the qualified investors held between October 10 and October 14. The company issued 22 million ordinary shares at an offer price of Tk 10 each under the fixed price method. The company has reported earnings per share (EPS) of Tk 1.67 and net asset value without revaluation reserve of Tk 18.47 as per the company’s financial statements ended on December 31, 2020.