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Apparel export to US crosses USD5b in 2015
New Age, February 11, 2016

• Bangladesh’s apparel export to the US market rebounded with an impressive growth at 11.74% in the just concluding year 2015 and crossed the USD5-bn mark for the first time, according to the Office of the United States Trade Representative.
• Bangladesh exported readymade garment items worth USD5.4 bn to the US, the single largest export destination of the country, in 2015.
• The amount of export earnings from the country increased by USD567 mn in the year compared with the amount of the previous year when total export earnings was USD4.8 bn.
• Bangladesh’s RMG export to the US market also registered the second highest growth rate among the competitor countries. Vietnam achieved the highest 13.97% growth in the year.
• The country’s RMG export to the US declined to USD4,834 mn in 2014 from USD4,947.54 mn in 2013 which was seen as the consequence of the two deadly accidents.

Non-food inflation hits 3-year high
Dhaka Tribune, February 10, 2016

• The monthly non-food inflation rate rose to a three-year high due to increased house rent, educational material prices and school admission fees.
• The non-food inflation stood at 8.78% in January, which is the highest since January 2013 when it was 9.09%.
• During the last month, it was 7.05%.
• However, overall inflation eased to 6.07% in the last month after creeping up in previous month, softened by the stable food prices.
• Overall inflation was 6.1% in December.
• Food inflation fell to 4.33% in January from 5.48% during the period.

Per capita income stands at USD1,316 in final count
New Age, February 10, 2016

• Rising by USUSD 2 from the provisional estimation, Bangladesh’s per capita income finally stood at USUSD 1,316 in the last fiscal year 2014-15, planning minister AHM Mustafa Kamal said on Tuesday.
• At the post-ECNEC briefing at the ministry, he said that per capita income slightly increased in the final calculation of the Bangladesh Bureau of Statistics in line with the rise of the country’s GDP growth to 6.55% in the last fiscal year than the provisional estimation of 6.51%.
• The provisional estimation for the FY15 was made in April last year based on the available data for nine months of the fiscal year.
• As per the provisional estimation, the per capita income was USUSD 1,314 in the last fiscal year which was USUSD 1,190 in the FY2013-14.
• Kamal said that the figures of GDP growth and per capita income were finalised after analysing the final data of the fiscal year.

Exports keep momentum in January
The Daily Star, February 09, 2016

• Exports raked in USD3.19 bn in January, the second highest in the country's history, on the back of a surge in garment shipments.
• The amount is an increase of 10.38% year-on-year but a slight drop of 0.63% from the previous month, which saw a record sum.
• In December 2015, USD3.20 bn was received in export earnings, the highest in the nation's history.
• January's earnings were also 5.17% higher than the month's target of USD3.02 bn, according to Export Promotion Bureau.
• Garment exports raked in USD2.63 bn last month, up 3.95% year-on-year but down 1.5% month-on-month.

Banks cut rates more in Dec amid lean loan demand
New Age, February 07, 2016

• The scheduled banks cut rates of interest on lending further in December last year as the businesspeople continued to show reluctance to receive loans from the banking sector due to sluggish business amid political uncertainty.
• According to the latest BB data, the weighted average interest rate on lending in the banking sector declined to 11.18 %age points from 11.27 %age points in November of 2015.
• The weighted average interest rate on lending continued to decline in recent months as it was 11.35 %age points in October, 11.48 %age points in September, 11.51 %age points in August.
• The lending rate in the banking sector maintained the downward trend as banks were forced to decrease the rate due to a sluggish credit demand from the businesspeople amid the political unease.
• The BB data showed that the weighted average interest rate on deposit of the banks also decreased to 6.34 %age points in December from 6.46 %age points in November of 2015.
• However, the interest spread rate, the gap between the interest rates on credit and deposit, slightly increased to 4.84 %age points in December from 4.81 %age points in November.

Small-cap firms to get a new platform to raise funds
The Daily Star, February 4, 2016

• Bangladesh Securities and Exchange Commission is set to introduce separate trading platforms on the twin bourses to facilitate fund-raising by small-cap companies.
• Companies with minimum paid-up capital of BDT 5 crore will be eligible to raise funds by using the platform, to be called “small capital platform”.
• But they will have to raise at least BDT 5 crore from “qualified investors” through listing on the platform, and the post-issue paid-up capital would not cross BDT 30 crore.
• Qualified investors mean the institutional ones and high net-worth individuals with adequate knowledge on investment.
• The Central Depository Bangladesh Ltd will create separate beneficiary owner's accounts for the qualified investors.
• General investors will not be allowed to take part in the trading of small-cap companies after their listing on the new platform.

Pvt sector credit growth hits 3yr high in Dec on lower bank rates
New Age, February 04, 2016

• The private sector credit growth in the country stood at 14.19% in December 2015, which was the highest in last three years, as the clients are now taking credit from banks due to lower rates of interest on the banks’ loan products.
• Overburdened with excess liquidity, most of the banks are now disbursing consumer loans with an interest rate of 13% to 14%.
• Credit flow to the private sector stood at BDT 6,20,506.90 crore in December 2015 against BDT 5,43,407.20 crore in the same month of 2014.
• It was BDT 6,03,922.70 crore in November 2015 against BDT 5,31,051.10 crore in November 2014.
• According to the BB data, the private sector credit had registered highest 14.80% growth in January 2013 after which it declined to 14% in February of that year.

US Exim Bank chair pledges higher investment in B’desh
New Age, February 04, 2016

• Chairman and president of Export-Import Bank of the United States Fred P Hochberg is now in the city on a two-day visit with a strong commitment to ramping up business and investment in Bangladesh.
• The objective of his trip is to have discussions with government officials and business leaders with the intention of expanding commercial interaction between the United States and Bangladesh.
• Explaining the reason behind his visit to Bangladesh, he said Bangladesh’s growing economy and rising consumer demand made it a place where US businesses wanted to compete.
• Hochberg said US companies were especially interested in helping Bangladesh meet its ambitious infrastructure investment goals with sustainable ‘Made-in-the-USA’ quality goods and services.
• In 2011 and 2013, the EXIM Bank financed more than USD500 mn to allow Biman Bangladesh Airlines to acquire four Boeing 777-300ER long-range passenger aircraft.

China sets 2016 growth target at 6.5-7pc
New Age, February 04, 2016

• China has set its growth target for this year at between 6.5 and 7%, the country’s top economic planner said Wednesday, an acknowledgement that expansion will continue to weaken.
• Global investors are closely watching the slowdown in the world’s second largest economy, which has created turbulence in world markets.
• In 2016 ‘downward pressure on economic growth still exists and will expand to some extent’, Xu Shaoshi, chairman of the National Development and Reform Commission, told a press briefing.

IMF cuts Bangladesh growth outlook to 6.3%
Dhaka Tribune, February 02, 2016

• The International Monetary Fund (IMF) has cut economic growth to 6.3% for this fiscal year from 6.8% as foretasted in October last year.
• The projection is much lower than the government’s target of 7% for the current fiscal year.
• In FY16, real GDP growth is projected at 6.3%, supported by higher public sector wages and public investment, according to IMF’s midterm review, which was released yesterday after the meeting of its executive board that concluded 2015 Article IV Consultation with Bangladesh.
• IMF said tax revenue performance has been weak, with revenues increasing more slowly than GDP.
• Also, private domestic demand, particularly private investment, has been subdued, partly contributing to a slowdown in credit to the private sector, it added.

WiMAX cos losing market to telcos’ 3G
New Age, January 28, 2016

• The country’s active WiMAX internet users declined by 68% over the last four years as the 3G mobile internet become more popular among the users.
• According to the latest data of the Bangladesh Telecommunication Regulatory Commission, the number of active WiMAX internet users came down to 1.48 lakh in December 2015 from 4.67 lakh at the same period in 2012.
• The user number came down to 3.15 lakh in December 2013 and declined further in December 2014 to 2.33 lakh.
• Currently, two WiMAX operators, Qubee and Banglalion, are operating in the market while another one, Ollo, received the licence but not in operation.
• Industry insiders say that the rapid expansion of 3G internet by the mobile phone companies is the main reason for the fall of WiMAX users in the country.
• The number of mobile internet users in the country rose to 5.14 crore in 2015 from 2.87 crore in 2012.