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Bangladeshi academician concerned over slow economic growth

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ANI Dhaka
Last Updated : May 09 2014 | 1:25 PM IST

Professor and Chairman Department of Economics Dhaka University, M.A.Taslim, has expressed concern over slow growth rate, and said the slow down started long before the political unrest.

In fact, he said, that the economy has been on a slowdown or a declining growth path since 2011-12.

"Most people seem to believe that the current economic slowdown has been caused by political uncertainty and political unrest. But a close look at government statistics on national accounts will reveal that the slow down started with long before this political unrest infact the economy has been on a slowdown or a declining growth path since 2011-12," said Taslim.

Unrest eased after the polls, which were boycotted by the main opposition party and shunned by international observers. But the respite could be short-lived as the opposition has said it will launch a fresh movement to try and topple the government.

The government raised heavily subsidised electricity tariffs in March and plans to increase gas prices, which could push inflation still higher and add to public anger over the spiralling cost of living.

Professor Taslim added that the country has seen a very serious slowdown in employment overseas.

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"Two sectors which employ most of the non agricultural work force. One is the foreign market that is our expatriate workers and the other is the garment industry. Now we have seen a very serious slowdown in employment overseas. Mind you that employment overseas is actually I think at least three times more than our largest sectors employment that is the readymade garment which employs around four million people," said Taslim.

The government had said it wants to trim inflation to seven percent in the current fiscal year ending in June.

The central bank has kept its key policy rates unchanged since February last year.

Bangladesh's economic growth is expected to slow to less than six percent in the financial year due to the political turmoil. In the previous year, the economy grew by six percent.

In contrast to the rising food prices, annual non-food inflation eased to 5.26 percent in March from 5.37 percent in February.

The country has been rocked by violent protests and a series of shutdowns and transport blockades led by the main opposition party, taking a toll on the economic growth.

Violence also gripped the country throughout the year as the government began war crimes trials dating back to the 1971 independence war to break away from Pakistan.

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First Published: May 09 2014 | 1:11 PM IST

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