Incremental Capital Output Ratio

The government would require total rate of investment to rise at 32.0 percent of GDP in FY 2013-14 if the ICOR remains constant at the level of the previous year (Table 03). On the other hand, if the investment rate remains constant to the level of FY 2012-13, the productivity of investment has to be enhanced to reduce ICOR to 3.72 to make this growth possible.

If the rate of investment observes an increment of 0.8 percent in FY 2013-14, and the ICOR returns to the level of 2011-12, the maximum growth possible in FY 2013-14 would be 6.49 percent. In view of the current condition of the economy, this is, however, not feasible. The inability to mobilise revenues at

Tobacco Cultivation rises in Nilphamari

Tobacco cultivation is rising in Nilphamari district (located at northern part of the country) as bidi-cigarettes companies were providing advance money to farmers for tobacco farming, says a report published yesterday on 31 December 2013 on online news portal sobuyjbangladesh24.com. Different bidi-cigarette companies were establishing their branch offices at various renowned local hat-bazar (market) in the district to distribute

Savings and Investment

The rate of growth in GDP has been constrained as investment has not been increasing at a satisfactory rate, especially by the private sector. The gap between savings and investment has been widening. Moreover, the incremental capital output ratio (ICOR)2 has deteriorated continuously in the past few years, indicating that the country has not been able to boost productivity of investment. The gap between savings and investment has increased over time. The government initiatives seem to be ineffective in

GROWTH, SAVINGS AND INVESTMENT

Several policy-induced macroeconomic challenges have severely restricted the maintenance of upward mobility of rate of growth in the recent fiscal years and the continuation of progress in different social sectors. The challenges have partly been the result of lack of farsightedness and creativity in policy making, resulting in fiscal and monetary mismanagement. 2.1 The Scenario of Growth The government has already reviewed many macroeconomic targets in FY 2014-18 that are set in the Medium Term