Economy not in crisis: Muhith
Dhaka, Mar 01 (UNB) - Finance Minister AMA Muhith on Thursday said in Parliament it is not true that the country’s economy is in crisis and inflation at alarming level.
He made the statement while answering to a scripted question of ruling party lawmaker M Israfil Alam (Naogaon).
Muhith said it is true that like the other developing countries across the globe Bangladesh also has inflation. “But, that is not at alarming level.”
He mentioned that the inflation rate in fiscals 2010-11, 2009-10, 2008-09 were 8.8 percent, 7.31 percent and 6.66 percent respectively. “This is lower than many countries,” he said.
The Finance Minister said that despite the global recession, the country in those three fiscal years managed to achieve GDP growth at 6.7 percent, 6.07 percent and 5.74 percent respectively.
The country’s GDP growth for the current fiscal year has been projected at 7 percent, he said.
But, he added that there are some impediments to achieving the projected GDP growth due to certain factors.
These are return of global recession; price-hike of some food items including wheat in the international market; fuel price hike and price adjustment in the local market; negative impact on manpower export due to unstable situation in the Middle East; import of huge materials for power generation and increase of import expenditure; sudden fall of remittance in flow in October; and devaluation of Taka against the US dollar.
Muhith also mentioned that the fiscal 2011-12 is an unnatural year because of vulnerable world economic situation; Middle East crisis; and deterioration of Iran’s diplomatic ties with the USA and Europe. “As a result, some risks have been created in our economy,” he said.
But, due to skilled management and time-befitting steps taken by the government had uncertainty has already cleared to some extent, he said.
The Finance Minister said it has to be remembered that the development of a particular year is not the whole thing, the mid- and long-term development is really important.
“It’s my belief that the higher growth will be continued and macro economic stability will be maintained,” he said.
He made the statement while answering to a scripted question of ruling party lawmaker M Israfil Alam (Naogaon).
Muhith said it is true that like the other developing countries across the globe Bangladesh also has inflation. “But, that is not at alarming level.”
He mentioned that the inflation rate in fiscals 2010-11, 2009-10, 2008-09 were 8.8 percent, 7.31 percent and 6.66 percent respectively. “This is lower than many countries,” he said.
The Finance Minister said that despite the global recession, the country in those three fiscal years managed to achieve GDP growth at 6.7 percent, 6.07 percent and 5.74 percent respectively.
The country’s GDP growth for the current fiscal year has been projected at 7 percent, he said.
But, he added that there are some impediments to achieving the projected GDP growth due to certain factors.
These are return of global recession; price-hike of some food items including wheat in the international market; fuel price hike and price adjustment in the local market; negative impact on manpower export due to unstable situation in the Middle East; import of huge materials for power generation and increase of import expenditure; sudden fall of remittance in flow in October; and devaluation of Taka against the US dollar.
Muhith also mentioned that the fiscal 2011-12 is an unnatural year because of vulnerable world economic situation; Middle East crisis; and deterioration of Iran’s diplomatic ties with the USA and Europe. “As a result, some risks have been created in our economy,” he said.
But, due to skilled management and time-befitting steps taken by the government had uncertainty has already cleared to some extent, he said.
The Finance Minister said it has to be remembered that the development of a particular year is not the whole thing, the mid- and long-term development is really important.
“It’s my belief that the higher growth will be continued and macro economic stability will be maintained,” he said.
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