Vol. 02 Issue 01
Total Page：16
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A Monthly Update of Economic Banking and Financial News A Newsletter of Research & Development Division, Prime Bank Ltd. After recession, export of the country is also getting some new boost; PERSPECTIVE: local export of personal leather goods, such as belts and wallets to the US market has increased. Some 1,07,000 pieces of personal A new year begins, 2010, but impacts of global recession still leather goods were shipped from Bangladesh in January-October continue as Singapore's economy shrank 6.8% in the fourth quarter 2009 for the US$ 70 billion plus US market of personal leather goods. to December from the previous three months. The government The country's medicine exports may witness an impressive jump in declared the recession to be over in November, but cautioned that 2010 thanks to the aggressive marketing the local manufacturers the strength of its recovery would depend on the pace of rebound in pursued in the early days of the global economic crisis. Local Singapore's major trading partners such as the United States, the pharmaceuticals' exports have received a blow at the start of the last European Union and Japan. On the other hand, Bank of America fiscal year 2008-09 as many importing countries shied away as they posted a loss of 194 million dollars in the fourth quarter of 2009, and were not able to continue their orders due to the recession. Now they that repayments of government aid boosted the loss for shareholders are opening letters of credit as the situation is improving worldwide. to 5.2 billion dollars. In the continent of Europe, ten out of hundred But, currently they have come up and started importing medicines people, who could be working are now unemployed. In Spain, one of again. Similarly, many countries in South America, who also stopped continental Europe's biggest economies, the rate has now hit a importing, have started importing. Georgia and many African shocking 19.4%. But at the same time, countries are trying boost their countries such as Ethiopia, Kenya and Congo are taking our way out of the recession, Taiwan aims to create 100,000 jobs. products. A three-member delegation of the European Union (EU) Taiwan's Council for Economic Planning and Development has set a arrived in Dhaka to observe the shrimp industry, as freshwater target for lowering the island's jobless rate from just under six percent shrimps worth Tk 300 crore have been prepared here for export. in 2009 to 4.9% this year, a goal that will not be an easy task.So, we Export of freshwater shrimps to the EU resumes this month after six can see, though world is getting out of the recession but, it is not over months' suspension since June last following detection of health- yet, hopefully at the end of 2010 we will see some better results, till hazardous antibiotic Nitrofuran in consignments of exported shrimps then we may keep our fingers crossed. in January 2009. There are some news that makes us believe that recession is really Despite global economic recession, local commercial banks posted fading way like, The World Gold Council (WGC) said on January 11 record operating profits in 2009. Operating income for most banks that gold sales across the countries in Middle East will considerably rose by 5 to 100% in 2009 compared to previous year, according to pick up in 2010, thanks to better market conditions and rising data collected from different banks. Officials said private banks were demand for the yellow metal in the Middle East, led by the United able to make huge profits from the share market. Besides, their Arab Emirates (UAE). Another Middle Eastern country, Iran planned earnings were boosted by the remittances and export-import next year's budget based on an oil price of US$ 60 per barrel, nearly business. Bangladesh Bank is taking many new reform measures, double the price from the last year, indicating rising optimism over for the financial sector of the country like; Dhaka Inter-bank Offered energy prices. Last year, the parliament approved a budget based on Rate (DIBOR) will be officially launched denoting the country's US$ 37.5 per barrel for the fiscal year ending in March, reflecting the benchmark interest rate and aimed at bringing discipline in its steep drop in prices that severely impacted the economy. financial market. Under the DIBOR, banks in Bangladesh will publish five rates-overnight, one week, two weeks, one month and three months-initially to ensure transparency in the country's money Macro-economy of Bangladesh is also showing some good news, in market. This also turns out to be the first ever index-based floating 2009 the stock market grew by 82.22%, to a total capitalisation of Tk rate transaction in Bangladesh Taka. Bangladesh Bank has directed 1,90,322 crore, from the capital base of Tk 1,04,380 crore in the all banks that they must take prior permission from it for purchasing previous calendar year. The daily average transaction increased to land, floor space or any other permanent structure. The government Tk 604.63 crore during the year ended in December '09, compared to has created a new administrative division on banking and finance from Tk 281.84 crore daily average in the previous year. In 2008, the under the finance ministry. The new division has been named as the inward foreign remittance was US$ 8.97 billion. Remittance crossed Bank and Financial Division, an official handout said. Bangladesh US$ 10 billion mark for the first time in Bangladesh history in the year Bank opened a separate department for the small and medium 2009 because migrants, a main driver of the country's economic enterprises (SME). The department will focus on the SME sector, progress, sent more money home despite all odds during global helping both the banks and the borrowers flourish their businesses, recession. With 20% growth, inward foreign remittance inflow said BB governor Dr. Atiur Rahman while inaugurating the new wing reached US$ 10.72 billion last year. A very welcoming news is that, at the central bank headquarters in the city. The Bangladesh Bank governor, Dr. Atiur Rahman, said Bangladesh was on the right track to be promoted as a middle-income country by 2012. Atiur pointed out that, the per capita gross national income had risen by about 50% to reach US$ 690 in four years, till June 2009. 'Reaching the middle-income threshold of US$ 976 should not take Inside this Issue Editorial Body more than four more years,' said BB governor. In Focus: Perspective 01 S M Anisuzzaman, SAVP Global Business & Economy 02 ANM Farukh, EO Investment climate of the country is showing some good indications; Md. Golam Moula, EO two foreign companies will invest more than US$ 52 million at Uttara Bangladesh Economy 02 Ashique Iqbal, MT and Adamjee EPZs. The companies will also create employment Agriculture 04 Research & Development Division opportunity for 15,017 Bangladeshi and 17 foreign nationals. A local Finance & Banking 04 Prime Bank Ltd. company, will expand its garments manufacturing industry in the SBC Tower (6th Floor) Karnaphuli Export Processing Zone (KEPZ). This 100% locally- Energy 08 37/A Dilkhusha C/A owned company will invest US$ 1.74 million in setting up its unit and Readymade Garments 08 Dhaka-1000 will produce specialised garment items. The company will also create Tel : 956 5564 employment opportunity for 1,500 Bangladeshi workers. Telecommunication 09 PABX: 9568184, 95657594 (Ext: 221) Miscellaneous 09 email: r&[email protected] A Newsletter of Research & Development Division, Prime Bank Ltd. 2 dollars. For all of 2009, the largest US bank by assets had a profit GLOBAL BUSINESS & ECONOMY: of 6.3 billion dollars, but for shareholders the results were a loss of 2.2 billion following payments to the US Treasury stemming from Singapore economy shrinks 6.8% in Q4 bailout aid. The last quarter's results were affected by a charge of Singapore's economy shrank 6.8% in the fourth quarter to 4.0 billion dollars to repay the US government for its capital aid December from the previous three months, but the slowdown was under the Troubled Asset Relief Program (TARP), a massive effort less than expected for the whole year, the trade ministry said today. to stabilize the banking system, Bank of America said. (Source: The The decline in gross domestic product was attributed to weakness Daily Star, January 21, 2010) in the key manufacturing sector, which shrank 38.4% on a seasonally adjusted quarter-on-quarter annualised basis, it said. Taiwan aims to create 100,000 jobs The government declared the recession over in November '09, but Taiwan's President Ma Ying-jeou said his government aimed to cautioned that the strength of its recovery would depend on the create 100,000 jobs this year in a bid to cut the island's pace of rebound in Singapore's major trading partners such as the unemployment rate significantly. Taiwan's Council for Economic United States, the European Union and Japan. With the economy Planning and Development has set a target for lowering the island's contracting less than feared, Singapore escaped what could have jobless rate from just under six percent in 2009 to 4.9% this year, a been its worst recession since independence in 1965, thanks in goal that Mr. Ma said would be "no easy task." He said there were part to a 20.5 billion Singapore-dollar (US$14.5b) government encouraging signs for employment, including a gradual recovery in stimulus package.