Economy shows signs of pick-up

The rise in collection of VAT and imports of capital machinery and industrial raw materials in the first six months this fiscal year showed clear signs that increased trade and commerce and investments are helping domestic economy pick up, officials say.
Data shows July-December earnings from value-added tax have marked 24 percent growth, while opening of letters of credit for the imports of capital machinery has grown by 28 percent and raw materials by 22 percent. However, these indicators were negative a month back.
This latest macroeconomic situation comes up for review today at a high-profile meeting with Prime Minister Sheikh Hasina in the chair, according to a finance ministry official.
The ministry will also report it to parliament later.
“There are clear signs that Bangladesh economy is picking up,” the official told The Daily Star, pointing to the necessity of adequate supply of gas and power to make such trends sustainable.
Meantime, revenue recorded 18 percent growth against the overall target of 15 percent.
According to the tax administration, increased VAT collection is the major contributor to such growth, which also indicates brisk economic activities.
Private sector credit, another indicator of the economy, posted 16.73 percent growth in November last. The June growth was 14.62 percent.
Today's review meeting will also be informed that gross domestic product growth will be between 5.5 and 6 percent, despite global recession fallout.
Also, the finance ministry apprise the crucial sitting of the contributions of the sectors like agriculture, industries and services to the GDP.
The government expects that average inflation will not cross 6.6 percent, although it marked a slight upward trend in recent times.