Steady Economic Rise By Major Economic Indicators In FY14

The economy showed the strength despite the unprecedented nation-wide destructive activities by the opposition political parties particularly ahead of the January 5 national election.

Bangladesh Bank (BB) latest data showed the prime economic barometers including foreign exchange reserve, remittance inflow and export earnings increased significantly during FY14.

Besides, banking sector and money market remained stable supported with adequate liquidity, declining classified loan and strong exchange rate of local currency Taka and moderate call money rate.

At the end of the FY14, share price index of Dhaka Stock Exchange (DSE) also marked considerable rise though market experienced ups and downs throughout the year mainly because of political instability centering the national election.

According to BB, the foreign exchange reserve surged to a record high of $21.32 billion on June 24, 2014, which was $15.31 billion on June 30, 2013. The figures showed the foreign exchange reserve rose by over 28 percent in a year, offering the country a highly comfortable position for external trade.

The country received $12.9 billion in remittance in the first 11 months (June to May) of the outgoing financial year. The total inflow of remittance at the end of June 30, the last day of previous 2012-13 financial year (FY13) was $14.46 billion.

The total remittance receipt at the end of June this year would be higher as expatriate Bangladeshis would send more money home on occasion of Ramadan and Eid. Export earning rose to $27.37 billion at the end of May this year with 12 percent growth over the previous month.

The growth in export in the previous FY13 was 11.22 percent with the total earning of $27.02 billion. The export earning would cross $28 billion when the figure for June would be available.

Inflation, a major indicator of economic stability, was in declining trend in FY14. The monthly average of inflation stood at 7.44 percent and the point-to-point at 7.48 in May this year, which was 6.57 percent and 7.98 percent at the end of June 2013.

Classified loan in the banking sector declined to 10.45 percent of total outstanding at the end of March this year, which was around 12 percent at the end of June of the previous FY13 financial year.

Local currency taka continuously showed strong position in FY14.

The exchange rate of taka against US dollar was 77.63 on June 24 when the average call money rate was 6.18 percent.

The country's capital market also showed steady rise at the end of the FY14 when the benchmark price index of Dhaka Stock Exchange (DSE) stood at 4480.52, higher by 375.55 points or 9.14 percent over the close of 4104.64 on June 2013.

-Bangladesh Sangbad Sangstha (BSS)