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Output in agriculture, industry and services sectors
Agriculture sector 2.1.1 According to provisional estimates of Bangladesh Bureau of Statistics (BBS), the agricultural
sector attained a 4.67 percent growth in FY10 which was higher than 4.12 percent actual growth recorded in FY09. The agriculture and forestry subsector recorded 4.87 percent growth, of which crop and horticulture 5.13 percent, animal farming 3.32 percent, and forest and related services 5.63 percent in FY10 over the previous fiscal year. The fishing subsector registered a 3.98 percent growth in FY10 compared to 4.16 percent growth of FY09. The contribution of agriculture sector to GDP at constant price is estimated at 20.24 percent in FY10 which is lower than the actual contribution of this sector to GDP at 20.48 percent in FY09 (Table2.1.1). Table 2.1.1: Sub-sectoral growth and share in GDP of agriculture sector output Sectoral/sub-sectoral growth rate FY07 4.56 4.69 4.43 FY08 3.20 2.93 2.67 FY09 4.12 4.10 4.02 FY10(r) 4.67 4.87 5.13 3.32 5.63 3.98 (in percent) Sectoral or sub-sectoral share in GDP FY07 FY08 FY09 FY10(r) 21.37 20.83 20.48 20.24 16.64 16.18 15.91 15.75 12.00 11.64 11.43 11.34 2.88 1.76 4.73 2.79 1.75 4.65 2.73 1.75 4.58 2.66 1.74 4.49
Agriculture sector Agriculture and forestry Crop and horticulture
Animal farming 5.49 2.44 3.48 Forest and related service 5.24 5.47 5.69 Fishing 4.07 4.18 4.16 Source: BBS. r denotes revised estimate of BBS. Crop production trends 2.1.2
Trends of major crops production in Bangladesh are reported in Table 2.1.2. In terms of
quantity, the dominance of boro, aman, potato and vegetables in crop production continued in FY11. The four crops comprise more than 75 percent of total crop production. The estimated total non cereal crop output, 44 percent in total agricultural output, increased in FY11 over the actual production of FY10.
08 8.11 Actual production for FY07 15.99 205.89 67.12 108.0 percent per annum) interest rate.9 8.50 13.03 135.40 149.80 7.12 205.90 516.67 8.93 641.13 3.92 1.85 52.89 14. the lending banks will be recompensed against this below market lending rate from budgetary allocation of the government.46 106.2: Cropwise agricultural production (In lac metric tons) Actual production for FY06 17. ginger.40 308.36 Estimated production for FY11 27.00 185. flood.6 87. dry chillies. 15 .09 8.83 14.51 Actual production for FY09 18.00 113.89 19.00 14.44 12.1.g.89 1.21 1. organization of countrywide road-show to raise awareness about disbursement of agricultural credit.17 billion for FY11 which is 9.70 357.45 0.86 4. and other spices are declining at levels far lower than actual demand.13 178.09 186.52 49.21 557. such as.62 8.63 466.25 10. at a low (2.88 84.68 0.40 335. 2.12 0.40 6. BB has taken some new measures.99 23.14 4.12 0.63 35. pulses.09 131. production of noncereal minor but essential crops like pulses.86 310.20 1.6 percent higher than that of FY10.39 13.22 494. Besides.12 4.07 96.10 139.61 8.43 8.50 36.08 689.25 0.94 116.06 8.76 9.68 279.05 0.49 222.76 93.27 Actual production for FY10 17.42 381.48 8.48 59.13 84.90 8.71 1. spices and maize.31 41.30 0.16 1.00 191.69 11.69 1.00 34.23 283.1.11 5.10 5. cyclone.10 1.37 8.62 177. resulting in high import dependence. onions.3 In annual agricultural credit program BB targets a disbursement of Taka 126.32 66.84 1.60 7.41 288.62 16.. To stimulate the agricultural production through greater access of the farmers to the banking system.56 0. oilseeds.Table 2.12 Actual production for FY08 15.00 108.50 108.84 Crops Aus Aman Boro Wheat Maize Total cereal Jute Potato Vegetables Moong Mosur Gram Mustared Sugarcane (Excl. mills) Onion Total noncereal crops Grand total Source: Directorate of Agriculture Extension (DAE) Bangladesh government is trying very hard to have self-sufficiency in rice production which is hampered usually by the factors like unfavorable weather events e. The agricultural credit program for FY11 has reiterated the availability of loans for stimulating cultivation of oilseeds.22 1.
01 percent growth in FY10.66 5.86 12. the industry sector registered a 6. r denotes revised estimate of BBS.86 17.68 6.58 6.10 8.30 1.47 5.21 1. manufacturing subsector recorded significant slower growth (Table 2.72 9.1.12 FY10(r) 29.45 17.5 Manufacturing subsector.46 6. 2. 16 . gas and water and construction sub-sectors in FY10 showing positive sign of recovery in industry sector.1.59 9.84 5.3).50 6. A delayed impact of global financial meltdown coupled with power shortages and decline in exports of several commodities during first three quarters in FY10 are mostly attributable reasons for lower growth in manufacturing.21 7.70 FY10(r) 6. which is lower than the 6.71 5.46 percent of FY09.70 17.26 7.10 7.74 9.Industry sector 2.3: Sub-sectoral growth and share in GDP of the industrial output (Growth in percent) Sub-sectoral growth rate FY07 Industry sector Manufacturing Large and medium Small scale Mining and quarrying Electricity.60 9. estimated to grow at 5.73 percent during FY10 as against growth rate of 6.73 5. Both sub-sectoral growth and share in GDP increased for mining and quarrying.05 6.33 2.77 5.1.71 percent during April-June period in FY10 over the same period of FY09 indicating strengthening of new investment activities in FY11.11 Source: BBS.55 12.25 1.18 1.1. However.78 7.01 5.1.14 1.57 9.63 5.85 Sub-sectoral share in GDP FY07 29.77 12.59 9.88 17. Strong performance of the major export-earning knitwear and woven garment sectors coupled with base effects led to 29.68 percent in FY09.87 5.4 According to the provisional estimate of BBS.90 12. Latest available data showed that Term loan disbursement in industries also increased by 3. the largest and the dominant part of overall industrial production.01 FY08 6. gas and water Construction 8.08 1.69 8.30 10. 2.90 9.13 FY09 29.18 1.20 1.91 5.38 9.6 Table 2.9 percent export earnings growth in the first four months of FY11. electricity.7 The 39 percent increase in capital goods and others imports during the first two months of FY11 compared to the same period of FY10 indicates strong recovery of the industrial output activities.94 6.1. 2.15 FY08 29.68 FY09 6.
49 2.85 Source: BBS.64 2.01 8.78 2.76 7.70 10.58 FY08 6.41 8.75 Sub-sectoral share in GDP FY07 49. higher than the 6. Most of the sub-sectors of service sector are linked with the growth of agriculture and industry sector and these sub-sectors’ activities are also gaining momentum steadily.70 FY10(r) 6. transport.76 2.41 0.20 2.10 7.32 6.05 7.55 8.37 0.90 7.29 8. Table 2.01 FY09 49.66 percent of FY09.96 7.62 FY09 6.31 7.75 6. storage and communication depend on agriculture and industrial growth.69 10.18 1.43 0.92 8.34 6.Services sector 2.93 FY10(r) 49.86 7.88 percent in FY10 which is higher than 49.81 7.03 9.24 0. healthcare and education.47 14.58 8.38 5.55 8.10 4.18 3.99 3.4: Sub-sectoral growth and share in GDP of the service sector outcome (growth in percent) Sub-sectoral growth rate FY07 Service sector Wholesale and retail trade Hotel and restaurants Transport.64 9.01 8.64 2.02 4.20 4.65 1.88 2.89 3.80 7.72 2. storage and communication Financial intermediation Real estate.84 9.71 10.75 2. r denotes revised estimate of BBS.1.38 percent growth in FY10. the service sector registered a 6.39 6.54 2.34 2. Growth in many subsectors of service sector like wholesale and retail trade. The contribution of service sector to GDP stood at 49.32 percent growth recorded in FY09. renting and business Public administration and defense Education Health and social works Community.09 FY08 49.52 8.81 7. 17 . social and personal services 6.35 3.82 7.72 10.49 6.18 14.66 14.8 According to the provisional estimates of BBS. Public administration and defence sub-sector is showing a higher growth in FY10 compared to the previous fiscal year.21 7.04 7. with continued expansion of new capacities in major subsectors such as hospitality (hotels.77 1.62 7.21 7.88 14. restaurants).1.44 1.76 8.58 2.20 8.64 4.29 7.
95 13.3.61 and 5.50 4.09 percent in FY09 to 18.35 80. The share of private and general government consumption increased to 75.82 11.53 79. Gross national savings 18 .2.84 19.84 76.54 6.44 79.44 17. 2000-01 6.34 2007-08 15.16 14.05 15.19 2006-07 13.94 5.1 Consumption The total consumption expenditure as a share of GDP increased to 81.60 5.2: Consumption shares in percentage of GDP and its growth rate Growth rate (%) Total Private General Govt.37 76.90 percent in FY09. Table 2.28 79.44 79.2 2.01 75.00 12. resulting mainly from increased share of both private and general government consumptions.53 79.59 15.41 Savings Gross domestic savings (GDS) as a share of GDP declined from 20.1).21 5.88 5.41 percent in FY10 from 74.32 percent in FY09 to 1. FDI.61 2003-04 9.90 percent increase in FY10).55 9.3 Savings.1 and Table 2.41 5. due presumably to higher consumption expenses as a result of rising trends of food inflation levels (p-t-p) during FY10.79 6.41 2001-02 7. respectively.60 11.30 percent in FY09.60 5.27 percent in FY10 (Table 2.02 5.21 r 2009-10 14.90 74. strong remittance inflows from workers abroad contributed significantly to this increased private consumption.77 percent in FY09 to 17.79 Source: BBS.99 percent in FY10 (Chart 2.97 10. and ODA Year Consumption-GDP ratio (%) Total Private General Govt. r-denotes revised 2.65 74.45 5. the decline occurred both in private and public sector savings.44 2008-09 12.67 10. The ratio of public savings decreased from 1.51 13.69 74.60 and 5.79 12.60 2002-03 9.01 percent in FY10 from 79.53 2004-05 10.12 5.99 74.20 14.51 220.127.116.11.47 74. 82. Private saving-GDP ratio decreased slightly from 18. The increase in general government consumption expenditure is partly supported by higher revenue expenditure due to implementation of new pay scale for government employees as well as implementation of second incentive package for export and other industry sectors.30 81.3.54 2005-06 11.75 74.72 percent in FY10.00 77.2) due partly to higher revenue expenditure over revenue earnings and lower surpluses generated by the state owned financial and non financial institutions. Investment.94 9.00 81.84 5.50 13.2.1 and Chart 2. The increase in private consumption as a share of GDP is presumably aided by increased disposable income (12.
75 percent in FY10 because of lower inflows of net factor income (NFI) in the second half of FY10 and net current transfer (NCT).72 Public Savings 0.05 17.57 28.66 30.09 18. NFI increased by 15.72 16.87 25.84 27. profit by banks and financial institution).1 Chart 2.75 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Source: BBS The recent trend in private sector saving component shows that household financial savings through several channels such as banks and financial institution including NSD.21 29.89 17.57 percent in FY09 to 28.19 18.63 18.77 17.(GNS)-GDP ratio also slightly decreased from 29.34 1.25 20.01 17.31 23.53 20.71 17.00 18.27 Domestic Savings 17.35 1.g.11 1.38 1.96 18.0 percent.67 28.99 National Savings 22.41 23.41 1.99 1.3.41 1.10 22.22 1.35 20.01 20. institutional savings (e. In FY10.41 18.1: Savings-GDP ratio in Bangladesh 35 30 As percent of GDP 25 20 15 10 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Domestic National Source: BBS Table 2. 19 .00 0. and inflow of workers' remittances contributed to increased private 1 BBS definition of NFI includes workers' remittances from overseas.87 percent while net current transfers grew by 16.16 18.44 24.99 1.88 18.44 25.3.32 1.31 20.63 19.1: Trends in savings as percentage of GDP of Bangladesh Year Private Savings 16.84 18.94 18.
State Bank of Pakistan (www.3: GDS-GDP Ratio in Selected South Asian Countries As percent of GDP 40 35 30 25 20 15 10 5 0 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09FY10P Bangladesh India Pakistan Sri Lanka Source: BBS.org.01 percent respectively over the same period of FY09.2: Trends in Private and Public Savings-GDP Ratio in Bangladesh 20 15 As percent of GDP 10 5 0 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Private Source: BBS Public Source: BBS Trends of the GDS to GDP ratio of Bangladesh are comparable to those of Pakistan and Sri Lanka but are substantially lower than that of India (Chart 2. Although GDS fall short of the level of investment in Bangladesh.org). Chart 2.org. Chart 2. and The Central Bank of Sri Lanka (www.savings. remittances.3. 13.55 percent.3). and 219. Reserve Bank of India (www. In FY10. 20 .rbi. time deposit.3. national saving has exceeded the level of investment in the recent time due to lower investment over saving stemmed from global financial crisis.40 percent.cbs. P=Provisional.pk).sbp.3. and net sale of NSD grew by 19.in).
45 4.46 24.21 6.37 24.21 17.19 percent in FY10.3. Private investmentGDP ratio increased from 19.85 16.96 21 .10 23.37 percent of FY09 (Table 2.37 6.77 percent in FY10 (Chart: 2.00 5.32 18. Table 2.3.02 23.95 4.65 24.4 Nominal Investment-GDP Ratio 27 25 As percent of GDP 23 21 19 17 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Current prices Linear (Current prices) Source: BBS.3.25 6.25 19.2).41 7.61 15.5 and Table 2.3.20 6.67 percent in FY09 to 20.2 and Chart 2.2: Trend in Private and Public Investment (As Percent of GDP) Year FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Source: BBS Private 15.96 percent in FY10 from 24. and similar ratio of public investment increased from 4.65 19.83 18.15 23.78 17.70 4.21 24.4) due mainly to rebounded investment activities in H2 of FY10.41 24.3.02 19.02 24.70 percent in FY09 to 4.3.Investment Despite mild recession impacted by global financial crisis domestic economic activities in H1 of FY10 nominal investment-GDP ratio increased to 24.77 Total 23.19 Public 7.19 6. Chart: 2.67 20.53 24.
3.37 percent in Bangladesh.0 percent in Pakistan (Chart 2. Figure 2.It is worthwhile to mention that the declining share of public investment in GDP reversed in FY10.3.5 percent in Sri Lanka and 19. In FY09.5: Trend in Private and Public Investment 25 20 As percent of GDP 15 10 5 0 FY00 FY01 FY02 FY03 FY04 Private FY05 Public FY06 FY07 FY08 FY09 FY10 Source: BBS Investment-GDP Ratios in Selected South Asian Countries Trends of investment-GDP ratio of Bangladesh are comparable to those of Pakistan but are lower than those of Sri Lanka and India. 34.88 percent in India. investment-GDP ratio was 24.8). resulted apparently from slightly higher implementation of the Annual Development Program (ADP) than that of last few years.3.8: Investment-GDP Ratio in South Asia 40 As Percent of GDP 30 20 10 0 FY01 FY02 FY03 FY04 FY05 FY06 Pakistan FY07 FY08 Sri Lanka FY09 FY10 Bangladesh India Source: BBS and publication of central banks of respective countries 22 . 24. Chart: 2.
Transport and Other Services Power.02 million in FY10 as compared with inflows of corresponding period of FY09. Statistics Department. received the share of 17 percent. FDI inflow to manufacturing and trade and commerce sectors also increased in FY09. In FY10.7). Chart 2. 4 percent. transport and other services sectors. gas and petroleum sector and others sector. 4 percent and 14 percent respectively of total FDI (Chart 2. Besides. banking sector. textiles and wearing sector. mainly due to a USD 43 million buyout of domestic investment in a telecommunication company by foreign investors.3. due partly to slow implementation of PPP framework.4 million which is 61 percent in the total FDI. gas and petroleum sector decreased. foreign investors were not keen to invest due partly to shortages of electricity. these sectors received USD 587.6). The sectoral share of FDI inflow during FY10 shows that telecommunication sector received the major share of about 49 percent in total FDI. mainly due to global downturn. 23 . BB. Sector wise trend of FDI during FY02 to FY09 shows that FDI inflow increased in communication.3. gas and water supply (Chart 2.Foreign Direct Investment (FDI) Total Inflow of FDI decreased by 5.0 percent to USD 913. 12 percent.3. on the other hand. Gas and Petroleum Others Source: FDI Survey Report. on the other hand. FDI inflow to power.6: Trend of FDI Inflow to Bangladesh 1000 900 800 700 600 500 400 300 200 100 0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 In Million US$ Total Manufacturing Trade and Commerce Communication. In FY09. power sector.
Official D Development Assistance ( t (ODA) Prelimina data show that total O ary w ODA.3.436 Loan 1170.8: Trends i the category-wise Foreign Aid inflow in Banglad in desh 2200 2 1900 1 1600 1 1300 1 1000 1 700 400 100 ‐200 ‐ Total T FY09 FY10 166 64.8).045 Grants s 493.685 563. net foreig financing in gn ncreased by 2 28. loan increase by 36.343 1601. MoF.4 mi SD illion in FY10 from USD 1664. . Banglad desh Bank. Sta vey atistics Depart tment.00 84 48.3.7 million in FY to USD 563.02 milli in 0 ion FY09.074 In Million USD Net Foreign Financing 1023. Of this amount.3. while grants incre million in FY10.1 p percent to US 2164.4 m Y09 million in FY10. compris sing of loan a grant.7: Sectora Share of FD during FY al DI Y10 Others Pow wer 14% 4% % Telecommunocati on 49% Gas a and Petrole eum 4% % Textile es and wea aring 17 7% Banking % 12% Source: FDI Surv Report.4 million in F FY10 from U USD 1023.028 216 64. Chart 2.3 p sed percent over F FY09. total am mortization am mount increas by 32. In FY n Y10.3 m million in FY0 to USD 16 09 601. As a r result.0 m million in FY09 ( (Chart 2.1 percent from USD 493. 24 .362 Source: ERD. dis and sbursed by th multilatera and he al bilateral d donors increased by 30.8 pe f ed ercent from U USD 1170.Chart 2 2.04 n e eased by 14.391 Amortisation 64 41.7 percent to USD 1316.03 1316.
719 Others 43.648 Bilateral 352. Chart 2.7 percent from USD 352. aid inflow from bilateral sources increased by 29.919 96.Total aid inflow from multilateral sources increased by about 27.9 million in FY09 to USD 96. The share of project aid increased from 86. On the other hand.7 percent in FY02 to 95.399 1610.7 percent from USD 43.1 percent from USD 1267.4 million in FY09 to USD 1610.10: Sector-wise Trends of Foreign Aid inflow in Bangladesh 2500 2000 1500 1000 500 0 FY02 FY03 FY04 Food Aid FY05 FY06 Commodity Aid FY07 FY08 Project Aid FY09 FY10 Source: MEI.3.6 million in FY10.7 million in FY10.028 2164.3.7 million in FY09 to USD 457.9).71 457.436 Multilateral 1267.3.3. 25 .9: Source-wise Trends of Foreign aid in Bangladesh 2500 2000 In Million USD 1500 1000 500 0 FY09 FY10 Total 1664.10). Chart 2.1 million in FY10 (Chart 2. Aid inflow from other sources increased by 118.9 percent of total aid in FY10 (Chart 2.wise aid component indicate that project aid component constituted the major share in total aid disbursement.069 Source: ERD During FY02 to FY10 sector. BB.
In FY10. Preliminary estimate of total revenue earning stood at Tk.8 billion from VAT.5 794.2 billion from customs duties.7 percent higher than the actual level of FY09 (Chart 2. tax revenue and non-tax revenue earning stood at Tk. performed well in FY10. Tk.6 billion.7 661. income tax of Tk. As against these revised targets.639. both tax and non tax.0 581.7 billion as against the yearly revised targets of Tk.7 494. 155.95 billion. customs duties of Tk.8 billion.1: Trend in Revenue Earnings 900 800 700 In billion Taka 600 500 400 300 200 100 0 FY02 Source: MoF FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Revised FY10p 278.8 percent and 9.9 311. 170. the NBR revised its annual revenue targets at 610 billion.4 Fiscal Developments Government Revenue Total revenue collection. 227. which is 17.4. 106.2. which is 1.794.0 448. Tk.91 billion.8 billion from income tax. and Tk. 109. which is 16.5 billion during FY10 as against the yearly revised target of Tk.5 In FY10.9 billion and Tk.73 billion in FY10 as against yearly revised target of Tk.8 769.3 billion from others sources in FY10. Chart 2. 660.4.2) mainly due to increased expenditure on subsidies and current transfer including relief 26 .3 percent higher than the actual revenue collection of FY09. 95.2 354. 165.4.648.5 392.29 billion. 769. 240.120.28 billion respectively. Public Expenditure The preliminary estimated data indicate that current expenditure stood at Tk. 114.56 billion and Tk. and other duties of Tk.8 percent respectively higher than their actual levels in FY09 (Chart 2.54 billion. with revised value added tax (VAT) of Tk. 771. NBR collected Tk.1).
deficit financing from domestic and foreign sources was revised at Tk. 86.18 billion from foreign sources (Chart 2. 310. 86.0 billion and was accommodated through Tk. 343. During FY10.25 billion and Tk. 181. 122.3). 99.2: Trends in Current and ADP Expenditures 900 800 In billion Taka 700 600 500 400 300 200 100 0 FY02 FY03 FY04 FY05 FY06 Current FY07 ADP FY08 FY09 FY10 FY10 p Revised Source: MoF In the backdrop of low implementation of ADP. 78. 256.55 billion and Tk. the target for development expenditure has been trimmed down to Tk. (-) 43.61 billion and non-bank financing at Tk.4. In FY10.39 billion (excluding grants. Among domestic sources.64 billion as against the original projection of Tk. Preliminary estimate of ADP utilization stood at Tk.and stimulus packages for protecting economic activities from bad impact of global downturn.4. bank financing was revised at Tk.80 billion from domestic sources including bank financing of Tk.5 percent of GDP) from original target of Tk.58 billion (excluding grants. preliminary estimate of total deficit financing amounting to Tk.1 billion in FY10 which is 90 percent of revised target. 86.56 billion and Tk. 173. interest payment and salary of government employee. 4.55 billion and Tk. 305 billion fixed in the FY10 budget.76 billion and non-bank financing of Tk. 205. 27 . 167. 38 billion respectively. Chart 2.72 billion respectively from original target of Tk. Budget Deficit The overall budget deficit in FY10 was revised at Tk. 5 percent of GDP). 285 billion for FY10 from Tk.73 billion respectively. 102.
37 3. export in Bangladesh registered a remarkable g growth of 29. So Exports E With W the onset of second ro t ound impact o global recession. Du of uring Q1FY11 the 1.1 growth in Bangladesh registered a negative 11.66 ng which turned aro ound quickly and started to recover s y slowly and re egistered a 0 percent g 0.9 97 Total 15.54 1 4.97 compared to t same peri of the iod the preced ding year of Q1FY10 resul Q lting from stro global re ong ecovery from crisis.88 3. the yea of ar-on-year (y-o-y) rate of e export Table 2. billion of exp proceeds have been r port s received whi is 4.5.94 FY10 3.Chart 2.89 0 10. In billion Taka ource: MEI.64 0.40 4. In spite of d an us deceleration in export grow at the beg n wth ginning of the year.5. Overall. percent c . y-o-y ( y) FY10 F FY11 -1 11. d during FY10.9 growth in Q2FY10 followed b a positive 10 percent g by growth in Q3F FY10 and hig 18.38 3.87 3.3 Sources o Financing of Budget Deficit 3: of g 180 160 140 120 100 80 60 40 20 0 FY0 02 FY03 FY04 FY Y05 FY06 FY07 Foreign D Domestic FY08 F FY09R R FY10 2.03 Growth rate e (percent.4.1) growth durin Q1FY10 w n .05 1 18.20 FY11 5.66 16.11 4 29.57 7 Source: Export Prom motion Burea au.5 2.27 4. e the overal performanc of exports h ll ce have been sat tisfactory and successfully overcame th impact of e d y he export reduction and showed further posi d itive growth p performance by the end o FY10. 28 . percent (Table 2. USD16.B BB.5.20 b .11 pe ich ercent higher tha the previou fiscal year.1: Quarterly e : exports and export grow rates wth Exp ports in billion USD n FY09 9 eptember July-Se Octobe er-December January y-March April-J June 4.5 percen growth rec gh nt corded in Q4F FY10.
8.6 percent growth respectively during FY10 (Table 2.67 30.43 FY09 (JulyJune) 148.84 -72.09 16204.62 25.6 percent and 0.24 2181.52 100. in the agricultural product category. the EBP data reveals that the two major export item in this group.83 28.17 269.28 14.03 30.01 3869.45 5029.52 437. 10.29 6429.25 12.03 -53.13 1377.52 0.51 5918. 6.76 1. raw jute and jute goods posted a robust growth of 53.76 1790.26 38.01 -3.5 percent and 100.27 103.5.88 percent (y-o-y) growth respectively in Q1FY10.05 31.42 percent respectively during FY09.63 12.40 6013.55 140. 29 .24 35. textiles and other lower value items can be expected to regain growth momentum in coming fiscal years as recovery from global recession progresses.57 2102.65 230.51 FY11 (July-Sep) FY10 (July-Sep) 1.07 132.88 -42.5.98 Products FY10 (JulyJune) 196.8 percent growth respectively during FY10.05 percent and 31.10 6483. 3.39 139.30 1883.21 154.64 4.2: Commodity-wise exports (in million USD) Changes during FY10 over FY09 (in percentage) 32. 4.37 540. Although the woven garments and knitwear (together which constitute more than two third of export basket) showed slightly negative growth during first three quarters of FY10.70 29. namely woven garments and knitwear recorded only 1. 2.29 177.83 38.48 11.05 35.85 33.3 Exports of apparels.65 12816.11 Source: Export Promotion Bureau. 5.37 64. In the agricultural product category.6 0.2).14 1653.30 0.23 percent and 1.47 18.17 5.62 -54.89 120.07 4438.2 Although the competitive strength of apparels and textile exports (to lower ends of markets in advanced economies in North America and Europe) has kept overall export growth at double digit level in FY09.80 45.2. Raw jute Jute goods Tea Leather Frozen food Woven garments Knitwear Fertilizer Terry Towels Others Total 55.5. 9.79 3396. During first quarter of FY11 performance of woven garments and knitwear exports rebounded strongly which recorded 30. 7. On the other hand.5.75 42.52 30. 2. both rates were negative 10.22 157.03 percent respectively during Q1FY11. a sustained positive growth momentum was achieved during Q1FY11 since the country still holds its export competitiveness in these items and is expected to continue during FY11 .11 Changes during FY11 over FY10 (in percentage) 53. Table 2.83 percent and 28.32 454. outstanding performance has been shown by raw jute and jute goods with 32.
clinker.8 and 57. chemical and chemical fertilizer. overall Taka depreciated marginally by 0. yarn. 30 .6 and 18.1 Imports About 75 percent of import consists of essential commodities.6. imports of intermediate goods mainly used for manufacturing output declined by 0.45 per USD as of end June’10 against Tk. intermediate goods. scrap vessels. iron and steel scrap.o. industrial raw materials.4.3 Import of food grains declined during FY10. 10. indicating that the country has lost some of its external trade competitiveness over its partner countries during July-May FY10.4 percent respectively during the year because of its sustained demand and lower domestic production.33 billion.6 2.04 per USD at end November’09 and Tk.06 per USD at end June’09. with weighted average nominal exchange rate at Taka 69. a large part of which are raw and intermediate materials for industrial production. Bangladesh Bank’s interventions in the domestic foreign exchange market by net purchase of foreign currencies of USD 2. pulses and sugar increased by 18.97 percent during FY10 indicating weakness in new investment activities. paper and paper board. and good domestic harvest. During FY10.39 billion compared to USD 20.5. During Q1FY11 the import payments increased by 37. raw cotton. 21. imports (provisional.16 billion during July-June FY10 kept exchange rate of Taka broadly stable with marginal undervaluation bias. reflected in the slower import for the export based capital machineries and raw materials. e. 69. This slower import growth can be partially attributed to the delayed impact of global financial crisis. milk and cream.2 percent respectively.47 per USD at the end of May 2010 from Taka 63.2 The major imports are food grains.4. e. import of rice and oil seeds declined by 68.. During the period. etc. f.g.6..9 percent). capital machinery.4. spices. computer and its accessories. Besides.05 per USD at the end of June’09. 75.61 billion in Q1FY10 to USD 6. textile fabrics and accessories for garments. reflected in the lower food grain import. Major imports 2. pharmaceutical raw materials.4 percent growth amounting to USD 21.26 percent from USD 4.g. Food grains and other food items 2.8. 2. petroleum and petroleum products. motor vehicles.Export competitiveness of exchange rate of Taka 2. On the other hand imports of wheat.6. edible oil.55 percent during FY10. 69.) registered only 5.29 billion during FY09. edible oil. because of good domestic output of food grains while imports of other food items increased robustly (30.b. The REER based exchange rate changed to Taka 66.4 The foreign exchange market remained mostly stable up to November’09 and Taka started depreciating slightly since December’09 against USD. 49.
supply are also dampen Intermed diate goods.71 billion).1 billion in value Y10 ed ing 18 ported during FY10. ph . Impo of crude petroleum.5 Im mport of inter rmediate goo used for further proce ods. Beside shortage of power an gas es.6.goods and oth capital m her machinery Capital g 2.1 Current accou balance C unt Current accoun balance (CAB) recorded a surplus of USD 3. VII (3 January-M 3). 2010. 2. percent gro . POL by 1.4 6 nd cles and nd percent re espectively du uring the perio od. raw cotton a staple fiber by 11. plastic an rubber artic by 15. le were imp declined b 8.42 billion durin FY09. March.73 bi C nt d f illion during F FY10 compar to red USD 2.2.4 percent yearl growth on adjusted fob b t ly basis) and sustai ined high 13. In Q1 1FY11 CAB has recorded a negative grow of 55. Slow demand i the wer in recession-hit advanced countries for the Ban d ngladeshi com mmodity esp pecially RMG products p G partly responsible for shrink king the capit machinery import dem tal y mand.5 an 5.4 owth in inflow of workers remittances during the s w s’ s same period.1 show that the movement of CAB genera follows th movement of trade ba ws m ally he ts alance.66 billio than the same period of previous ye (USD 2.9.6. In s 2 ng spite of contin nuous deficits in service an income ac s nd ccount. this su urplus in CAB w mainly att was tributable to s slower import growth (5. nd e ning initiative for setting up new indus es strial units or expanding th existing pla he ants.3. Intermediate goods totali USD 10. chemica by 1. f g ort fertilizer.0.4 Im mport of capital goods and other capita machinery r d al recorded a slo ower 5.6 perc cent growth d during FY10 com mpared to FY09. on) s ear 1 Sou urce: Banglad desh bank Quarterly. 9. industrial raw materials w 2.7.98 percent during FY compare to FY'09.16 p n wth percent with lower inflow of workers’ remittances (USD w 2. 6 als harmaceutical products by 28. clinker by 6.2.4 p by percent respe ectively durin FY10 whil imports of some other g ng le f goods increased. decreased by 0. dyeing and l y tanning m materials by 6. Chart 2. 24.1.7. yar and textil and accessories rn.7 2.8.3 and 5. essing in man nufacturing se ector.4. 31 . followi F ing the rega aining of inv vestors’ confi idence.
61 billion during FY09.4 percent and stood at USD 10.22 billion.99 billion during FY10 from USD 9.57 billion in Q1FY11.74 in the same period of the previous fiscal. Income account 2.82 billion in Q1FY10.7.83 percent) resulting in increase of deficit in the service account from USD 0.7.3 The net balance of services account during FY10 stood at a deficit of USD 1.02 during Q2. During Q1FY11 income account recorded a deficit of USD 0.33 billion in Q1FY10 to USD 0. Workers’ remittances recorded a growth of 13.29 billion compared to USD 0. A close look at the quarterly data reveals that the service payments increased more sharply (36.5 Surplus in the balance of current transfer account is a historical phenomenon in our BOP. The deficit in income account was highest in Q4 (Chart 2. However. again decreased to USD 1.69 billion of FY09. During Q1 FY10 trade account recorded USD 0.49 percent) than receipts (11. during Q1 FY11 trade deficit recorded USD 1.31 billion compared with USD 0.2 Trade deficit stood at USD 5.7.61 billion.74 billion deficit which increased to USD 2. Current transfer 2.80 billion compared to USD 2.48 billion recorded in FY09.15 billion during FY10 against USD 4. During Q1FY11 current transfer account recorded a surplus of USD 2.49 billion which is almost the same as USD 1.7. 32 .Trade balance 2.5 percent growth over the previous fiscal year and stood at USD 11. As workers’ remittances constitute more than 95 percent of current transfer. relatively stronger growth of remittance inflow act as the driving force in generating the surplus of this account.4 During FY10 income account recorded a deficit of USD 1.17 billion in Q3 and in Q4 the deficit increased slightly to USD1.7.34 billion in Q1FY10. Services account 2.1).71 billion during the previous fiscal year.24 billion compared to a deficit of USD 1. During FY10 current transfer experienced a 13.
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