Source: http://newagebd.net/242945/fy16-investment-nscs-hits-record-BDT-33688cr/

Citi: GDP growth gathers pace

The US-based Citibank NA remained hopeful about Bangladesh’s economic growth prospect. Pointing finger at the country’s recent economic growth, the bank said higher implementation of Annual Development Program and higher consumption driven by new pay scale for public sector employees and moderate inflation helped boost the GDP growth. GDP growth target for FY17 has been set at 7.2%, while the target is to achieve 8.0% by 2020 as per the government’s 7th Five Year Plan. To support the growth, investment-GDP ratio of 34.40% has been aimed for the same period from the existing level of 29.4%, it said. About the local currency versus greenback, it said the demand for dollars subsided briskly in March with growing exports as the pair fell to 78.4 in early March, a level which has prevailed since then. While BDT has remained robust, many of Bangladesh’s trade partner countries have seen their currencies weaken against US dollars. Under the circumstances, it warned that the primary challenge lies in promoting investor confidence and thereby increasing import of capital stocks in productive sectors to take advantage of lower costs induced by exchange rate benefits, which will eventually help in easing appreciation pressure on BDT. Average inflation slid to 12 year lows to 5.92% in FY16 on the back of low food inflation, which was well below the government’s target of 6.2% for the period. Good domestic harvest, low international commodity prices and political stability helped in keeping inflation manageable. Food inflation dived to 4.92% from 6.68% in the past fiscal. However, non-food inflation surged to 7.45% from 5.99% during the same period.

Source:
http://www.dhakatribune.com/business/2016/jul/28/citi-gdp-growth-gathers-pace#sthash.SU34H8dY.dpuf
http://print.thefinancialexpress-bd.com/2016/07/28/147500

Bangladesh has lowest internet penetration in South Asia: International Telecommunication Union

Bangladesh has the lowest internet penetration in South Asia, with just 14.40% of the population having connectivity to the internet, according to a report by the International Telecommunication Union. The country stands 144th in ITU’s ICT Development Index, up from its 148 spot in 2010. Even Myanmar that introduced mobile phone services only a few years ago came ahead of Bangladesh in the rankings, at 142. Its internet penetration stands at 21.8%. As of December 2015, Bangladesh has 3.9 million fixed broadband subscriptions, which is 2.4% of the total population, according to the ITU report. Earlier, the World Bank in its ‘World Development Report 2016: Digital Dividends’ said Bangladesh has the fifth largest offline population in the world, with about 148 million still not connected to the internet. However, the government denied both the reports. Zunaid Ahmed Palak, state minister for ICT, said the government is satisfied with the Bangladesh Telecommunication Regulatory Commission’s published numbers, which show the country’s internet penetration is about 40.0%.

Source:
http://www.thedailystar.net/business/bangladesh-has-lowest-internet-penetration-south-asia-itu-1260400
http://newagebd.net/242936/itu-enlists-bdesh-among-least-internet-user-countries/

Tea prices fall amid ample supply

Tea prices in Bangladesh fell about 1% at the weekly auction on Tuesday as volumes on offer were at their highest level of the season, reports Reuters. Bangladesh tea fetched an average of 212.5 BDT (USD 2.8) per kg at the auction, the 13th of the new marketing season, compared with 214.2 BDT in the previous sale. A larger quantity of tea was on offer which was well absorbed at slightly lower rates, National Brokers said in a market report. About 2.3 million kg were offered at the sole auction center in Chittagong, of which about 8% was unsold. In the previous auction, about 8% of the 2 million kg on offer was unsold. Bangladesh has moved from being a net exporter to a net importer of tea due to rising consumption.

Source: http://www.thefinancialexpress-bd.com/2016/07/28/39808/Tea-prices-fall-amid-ample-supply

Bashundhara Group to build two economic zones

Bashundhara Group will receive two prequalification licences today from Bangladesh Economic Zones Authority to set up two separate economic zones at Keraniganj in Dhaka. Beza Executive Chairman Paban Chowdhury will hand over the licences to Bashundhara Group at a programme in Dhaka. The group will set up the Bashundhara Special Economic Zone on 56 acres of land and the East West Special Economic Zone on 53.87 acres of land in Keraniganj — some 15 kilometres from the capital. The economic zones will create 44,000 jobs as it will be a suitable place for heavy industries such as cement, liquefied natural gas and petrochemical-based products, said a Beza official. Within a year of receiving the licences, Bashundhara will have to conduct an environmental impact assessment and feasibility study and prepare a master plan. Upon satisfactory completion of the prequalification exercises, it will get the full licence, which will make it eligible to enjoy tax exemption for 12 years. Apart from the developers, entrepreneurs can also get fiscal and financial incentives and other benefits that industrial units typically get in export processing zones. By setting up a unit in an economic zone, investors can get tax exemption facility for 10 years. They can also enjoy Bangladesh’s significant market access to developed and neighbouring countries, demographic dividend, the domestic consumer market and most importantly, the cheap labour force.

Source: http://www.thedailystar.net/business/bashundhara-build-two-economic-zones-1260385

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