The ongoing political instability in the country might be a blow to the vision of becoming a middle income country by 2021 as it will be difficult to raise the required industrial contribution to 35 per cent to the gross domestic product in the situation, said the annual council report of the International Chamber of Commerce-Bangladesh on Saturday.
If the unstable satiation that started from the beginning of the year is prolonged, it would put an adverse impact on the economy, said the report of the ICCB annual council.
ICCB president Mahbubur Rahman presided over the 20th annual council of the trade body at a hotel in Dhaka.
The trade body observed that Bangladesh was on the way to become middle income country by 2021, but to attain the goal, investment, GDP growth and industrial contribution to the economy would have to be increased.
‘We must, therefore, work together to overcome all hurdles and come out of the stagnant 6 per cent GDP growth,’ the annual council report said.
The government has set 7.3 per cent growth target in the budget for the current fiscal and to achieve the target, according to the Asian Development Bank, the total investment should be around 34.3 per cent from the present level of 28.7 per cent of the GDP, the ICCB report observed.
Quoting the ADB, the ICCB report said, ‘The Bank blamed lower than expected level of investment as principal reason for growth deficit in Bangladesh.’
Investment is very important to achieve the middle income status as the GDP growth is needed to increase to 8.5 per cent from the present 6.3 per cent, the annual council report said.
Mentioning the World Bank report, the ICCB said that the economic growth would be supported this year and afterwards by continued robust remittances and recovery in private consumption demand, but political stability would be vital to its sustainability.
According to the annual council report, despite global shocks Bangladesh’s economy has maintained a healthy 6 per cent plus growth rate over the past decade and sustained growth has generated higher demand for improved infrastructure including uninterrupted power supply, better transport and telecommunication services.
ICCB vice-president Latifur Rahman, Dhaka Chamber of Commerce and Industry president Hossain Khaled, American Chamber of Commerce in Bangladesh president Aftab ul Islam, Bangladesh Garment Manufacturers and Exporters Association president Atiqul Islam, Chittagong Chamber of Commerce and Industry president Mahbubul Alam, Bangladesh Insurance Association chairman Sheikh Kabir Hossain, Trust Bank managing director Ishtiaque Ahmed Chowdhury, adviser to the executive director of BRAC Bank Muhammad A (Rumee) Ali, and senior officials of banks, insurance companies, national and multinational companies attended the council.
If the unstable satiation that started from the beginning of the year is prolonged, it would put an adverse impact on the economy, said the report of the ICCB annual council.
ICCB president Mahbubur Rahman presided over the 20th annual council of the trade body at a hotel in Dhaka.
The trade body observed that Bangladesh was on the way to become middle income country by 2021, but to attain the goal, investment, GDP growth and industrial contribution to the economy would have to be increased.
‘We must, therefore, work together to overcome all hurdles and come out of the stagnant 6 per cent GDP growth,’ the annual council report said.
The government has set 7.3 per cent growth target in the budget for the current fiscal and to achieve the target, according to the Asian Development Bank, the total investment should be around 34.3 per cent from the present level of 28.7 per cent of the GDP, the ICCB report observed.
Quoting the ADB, the ICCB report said, ‘The Bank blamed lower than expected level of investment as principal reason for growth deficit in Bangladesh.’
Investment is very important to achieve the middle income status as the GDP growth is needed to increase to 8.5 per cent from the present 6.3 per cent, the annual council report said.
Mentioning the World Bank report, the ICCB said that the economic growth would be supported this year and afterwards by continued robust remittances and recovery in private consumption demand, but political stability would be vital to its sustainability.
According to the annual council report, despite global shocks Bangladesh’s economy has maintained a healthy 6 per cent plus growth rate over the past decade and sustained growth has generated higher demand for improved infrastructure including uninterrupted power supply, better transport and telecommunication services.
ICCB vice-president Latifur Rahman, Dhaka Chamber of Commerce and Industry president Hossain Khaled, American Chamber of Commerce in Bangladesh president Aftab ul Islam, Bangladesh Garment Manufacturers and Exporters Association president Atiqul Islam, Chittagong Chamber of Commerce and Industry president Mahbubul Alam, Bangladesh Insurance Association chairman Sheikh Kabir Hossain, Trust Bank managing director Ishtiaque Ahmed Chowdhury, adviser to the executive director of BRAC Bank Muhammad A (Rumee) Ali, and senior officials of banks, insurance companies, national and multinational companies attended the council.
Source: New Age