Bangladesh economy is ranked 44th globally as per the GDP based on current prices of 2015, Planning Minister AHM Mustafa Kamal said, citing World Bank and IMF reports. After the ECNEC meeting on Tuesday, the planning minister at a press briefing also said Bangladesh’s GDP size now stands at $205.3 billion on the basis of current prices. Prime Minister Sheikh Hasina chaired the meeting held at NEC conference room. “For the last six years, we’ve been constantly holding a GDP growth rate over 6 percent, which is a great achievement. We have to advance our economy by bringing about structural change through proper management with whatever resources we have,” a meeting source quoted Prime Minister Sheikh Hasina as saying. “Everyone has a contribution to this tremendous economic achievement. I hope that this trend of the country’s economic progress will continue,” the premier added. Although Bangladesh is at 44th place, it is still ahead of the countries like Vietnam, Kazakhstan, Portugal, Qatar, New Zealand and Peru as per GDP based on the current prices. However, as per GDP based on purchasing power parity (PPP), Bangladesh has upgraded its position at 33 with a GDP size of $ 572.4 billion ahead of Algeria, Vietnam, Iraq, Venezuela, Belgium and Switzerland. According to the GDP based on current prices of 2013, Bangladesh’s economy was at the 58th place with a GDP size of $149,990 million. However, the US was at the top with $ 16,768,100 million while Vietnam was at the 57th position with $1,71,390 million. As per GDP based on current prices of 2015, the US is holding the first position with a GDP size of $18,124.70 billion followed by China with a GDP size of $11,211.90 billion, Japan with a GDP size of $4,210.40 billion, Germany with a GDP size of $3,413.50 billion and United Kingdom with a GDP size of $2,853.40 billion. However, as per the GDP based on purchasing power parity of 2013, the position of Bangladesh in global economic arena was at 36 with GDP size of $461,644 million ahead of Switzerland, Sweden, Singapore, Ukraine, Hong Kong and Qatar.

The country’s trade deficit is set to cross the record of $9.32 billion in the outgoing financial year 2014-15 as the gap already stood $8.49 billion in the first 10 months due to a drop in export growth against higher import. According to Bangladesh Bank data, the country registered a record gap in import payments and exports earning of $9.32 billion in the FY12 after which the deficit decreased to $7 billion and $6.80 billion respectively in the FY13 and the FY14. ‘The trade gap in the first nine months [July-March] was $7.14 billion which soared to $8.49 million July-April. With the current trend, the trade deficit will easily cross the record set in the FY12 at the end of the current fiscal year,’ said a BB official, while talking to New Age. The trade deficit in July-April of the current fiscal year is 54.18 per cent higher than that of $5.5 billion in the corresponding period of the FY14. Officials of Bangladesh Bank said falling export growth of readymade garment, the main export product of the country, dented the overall earnings in July-April of the FY15 while import registered an increased trend during the period. The export earnings registered a 2.67-per cent growth in the first 10 months of the FY15 against 13.57 per cent growth in the same period of FY14. The export earnings stood at $24.96 billion in July-April of the FY15 while it was $24.31 billion during the same period of the FY14. The BB data showed that RMG exports from Bangladesh in the July-April period of the FY15 rose by 3.18 per cent compared with that of 15.39 per cent during the same period a financial year ago. The country’s export earnings from the RMG sector stood at $20.56 billion in the first 10 months of the FY15 against the last year export value of $19.97 billion. The overall imports registered a 12.19-per cent growth in the first 10 months of the FY15 compared with that of 10.54 per cent growth in the corresponding period of the FY14. The import payment stood at $33.46 billion in July-April of the FY15 and it was $29.82 billion in the same period of the FY14. The BB official said that the decreased growth in export earnings had put an adverse impact on the country’s trade account. The lower export growth in the recent period has already created a worrisome situation for the country’s business sector, he said. The higher import growth in the period was apparently good for the industrial sector, but the trend also raised suspicion of money laundering due to a lower private sector credit growth in recent months, he said. He said, ‘The import growth of capital machinery was much higher than that of industrial raw materials, but the businesspeople took little initiative to expand their business in the period due to political crisis.’ He said importers might now be making over-invoicing to launder money abroad as the recent higher import growth had not put any major positive impact on the industrial sector. The BB data showed that the current account balance registered a deficit amount of $1.64 billion in the first 10 months of the FY15 against a surplus amount of $1.53 billion during the same period a year ago. The net foreign direct investment increased by 5.02 per cent to $1.25 billion in the first 10 months of the FY15 from that of $1.19 billion in the same period of the FY14. The BB data, however, showed that the financial account of the country’s balance of payments decreased to $601 million in the first 10 month of the FY15 from $719 million during the same period of the FY14. The financial account includes foreign direct investment, portfolio investment, and medium- and long-term loans. The country’s overall balance decreased by 23.52 per cent to $3.29 billion in the first 10 months of the FY15 against $4.30 billion during the same period of the FY14 due to its weak position in the current account balance.

Rana Plaza Donors Trust Fund, formed to compensate the victims and the family members of the deadliest factory disaster that killed 1,135 workers, reached its US$30m target needed to pay full-fledged compensation. “The Clean Clothes Campaign (CCC) is delighted to announce a major campaign victory with the confirmation Donors Trust Fund has finally met its target of $30m, following a large anonymous donation,” said a CCC statement yesterday. Now, the victims of the Rana Plaza factory collapse are going to finally receive full compensation for the loss of income and medical care, said the statement. “This is a huge victory–but it’s been too long in the making,” said Ineke Zeldenrust of the Clean Clothes Campaign. The brands with a collective annual profit of over $20bn took two years and significant public pressure to come up with a mere $30m is an indictment of the voluntary nature of social responsibility, said Zeldenrust. Zeldenrust said: This day has been long in coming. Now that all the families impacted by this disaster will finally receive all the money they are owed, they can finally focus on rebuilding their lives. This is a remarkable moment for justice. The Rana Plaza Donors Trust Fund was set up by the ILO in January 2014 to collect funds to pay awards designed to cover loss of income and medical costs suffered by the Rana Plaza victims and their families. The Clean Clothes Campaign will continue to support the Rana Plaza victims who are pursuing further payments in recognition of the pain and suffering inflicted upon them as a result of corporate and institutional negligence, it added. The Rana Plaza Coordination Committee also paid Tk76 crore, which is 70% of the compensation to the injured and the family members of deceased and missing workers. Prime Minister Skeikh Hasina has so far distributed over Tk15 crore as compensation to 976 deceased victims’ family while over Tk4 crore to 38 severely injured victims. On April 24 in 2013, Rana Plaza, which housed five garment factories, a shopping complex at Savar, collapsed, killing 1,135 workers and injuring over 2,500 workers.

G7 leaders meeting in Bavaria have agreed to establish a new fund to help improve the global supply chain in the wake of the Rana Plaza disaster in Bangladesh. The fund would help provide compensation in the event of further similar disasters and provide cash to improve fire inspection and building safety regulations, reports the Guardian. The G7 will recommend that western consumers have access to apps that better inform them about whether clothes they intend to buy were manufactured in decent working conditions. It has take more than two years for a compensation fund for relatives of the Rana Plaza victims to reach its target of £20m. Angela Merkel, the German chancellor, put the issue of textile industry working conditions on the G7 agenda, and the leaders’ communique calls for a “vision zero fund” – in essence an insurance fund – to compensate victims of future disasters and improve working conditions. The fund would be administered in conjunction with the International Labour Organisation, and require contributions from trade associations in developed countries represented at the G7. It would act as an insurance system for firms that commit to prevention measures and help implement labour, social, environmental and safety standards, such as better-trained fire prevention inspectors. Extremely low wages have led global brands and retailers to choose Bangladesh over China and other developing countries in recent years, but in many cases the big brands have either turned a blind eye to working conditions in pursuit of profit or knowingly taken no interest in how their clothes are manufactured. The Rana Plaza collapse prompted demands for reforms in a sector that helps Bangladesh earn more than £12bn a year from exports, mainly to the US and Europe. The G7 communique states: “Given our prominent share in the globalisation process, G7 countries have an important role to play in promoting labour rights, decent working conditions and environmental protection in global supply chains. Unsafe and poor working conditions lead to significant social and economic losses and are linked to environmental damage. We will strive for better application of internationally recognised labour, social and environmental standards, principles and commitments.” The communique says it is the responsibility of governments and business to foster sustainable supply chains. National governments must persuade companies headquartered in their territory to conduct due diligence on how their clothes are manufactured. Germany’s federal development minister, Gerd Müller, one of the politicians behind the initiative, said seamstresses in Vietnam or Bangladesh who worked on jeans that could be sold in Berlin for €100 a pair worked at an hourly rate of 15 cents.

The country’s export earnings rose by nearly 3%, riding on the RMG sector in the first eleven months of the current fiscal year. According to Export Promotion Bureau (EPB) data, in July-May of FY2014-15, Bangladesh earned $28.14bn by exporting goods, which is 2.80% higher compared to the same period last year. However, Bangladesh failed to achieve its set target by 6%. The government set the target of earning $29.94bn during July-May of the current fiscal year. In May, Bangladesh fetched $2.84bn through export to the global markets, which is 4.37% higher compared to $2.72bn of the same period last year. But the country has failed to reach its export target of $3.1bn by 8.57%. RMG sector, the highest export earner, posted a 3.37% growth to $22.92bn in July-May period of the FY2014-15 compared to same period of last fiscal year. On the other hand, RMG export rose by 6.84% to $2.34bn in May, compared to the same period of last year. According to EPB data, woven sector earned $11.76bn, which was 4.43% higher compared to the same period last year, while Knitwear earned $11.67bn, posting a 2.28% growth. Among the other major sectors, pharmaceutical sector posted a growth by 4.49% followed by leather products 2.52%, footwear 26.93%, jute and jute goods 5%, home textile 1.8% and bicycle 15.15%. while frozen food export earnings fell by 5.19%, which was followed by shrimps 4%, tea 23.37%, vegetable 25.79%, leather 21.26%, raw jute 14%, specialised textile 4.32% and furniture 8.88%. “The export growth including plastic goods could be better if the prices of Euro did not devalue against US dollar as EU markets are our prime export destination,” Md Jashim Uddin, President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) told the Dhaka Tribune. He also urged the government to keep the tax at source at 0.60% for the development of export-oriented sector as it suffers in the wake of recession in the global market.

Carlo De Carolis, Head of Operations, Lotto Sport Group will arrive Dhaka today on a business visit. During his visit to Bangladesh, Carolis will survey Bangladesh market and appraise himself of Lotto’s activities in the country. This visit will prove to be very significant as Carolis has a view to expanding Lotto’s business in the local market. In addition to Lotto, Carolis will also visit other manufacturing facilities as well as visit some of Lotto’s flagship outlets. Carolis is also scheduled to meet with some government and non-government officials. Carolis is a highly experienced official with a long track record in operation and supply chain management in the fashion and luxury industry. Since 2011, Carolis has been overseeing Lotto Group’s shoes, apparels and accessories production, quality assurance, customer service and supply chain management. In addition, he is also responsible for the general management of Lotto Sport Hong Kong Ltd.

Country’s export income grew slightly by 2.80 percent during the July-May period, the Export Promotion Bureau (EPB) said on Monday. Exporters have blamed a prolonged political unrest for the sluggish growth in export income. According to EPB statistics, the country fetched $28144.38 million during the July 2014 to May 2015 period against the target of $29943.08 million for the 11-month period. The target for the entire fiscal (July-June) was set at $ 33200 million. Of the 11-month export performance, the apparel sector, which has been the highest export income generator, brought $22924.74 million in export income, according to EPB data. The apparel sector alone fetched $ 24491.88 million last year. In the single month of May this year, the country has earned $2841.13 million from export, posting a 4.37 percent growth over the income of $ 2722.18 million in the same month last year. Income from Knitwear export in May stood at $11167.53 million, which is 2.28 percent higher than the same month last year. Woven sector fetched $11757.21 million in May this year, with 4.43 percent growth over the same month last year. The export targets for the (July-May period) were $11919.16 million and $12339.59 million respectively for knit and woven sector. And, the entire fiscal’s (July-June) target of knitwear and woven was $13215.61 million and $ 13681.77 million respectively. Income from Jute and jute goods export registered a 5.01 percent growth in May over the same month of the previous year. Home textiles fetched $742.06 million against the target of $766.62 million. Export of engineering products registered an encouraging 23.65 percent growth over the corresponding month of last year, which is also 18.89 percent higher than the current target. The sector fetched $ 416.64 million against the target of $350.4 million. Golf shaft exports also registered a cheering 29.79 percent growth; though the total income has been small in terms of gross target of export income. The government has set the target at $11.75 million, but the income totaled to $13.55 million. EPB data shows that income from Pharmaceuticals export grew by 4.49 percent while that of computer services also grew significantly. However, frozen food export fell by 8.39 percent—frozen fish by 6.69 percent and shrimps by 4.07 percent. Besides, leather & leather products, cement, salt, stone and petroleum bi-products sectors also saw a fall trend in export income.

The Rana Plaza Coordination Committee has announced that it has raised all the funds required to enable the scheme to make full payments to all victims in the coming weeks, reports UNB. The Committee which represents all industry stakeholders had estimated that US$30m was required to ensure that all victims can receive fair and equitable compensation according to ILO Conventions, according to a message received here from Geneva. By April 2015, the second anniversary of the Rana Plaza accident, over $27m had been raised and the Committee had paid out 70 per cent of the awards promised to over 2800 claimants. Further donations, including one significant sum pledged late last week mean that $30m has now been reached and all final payments can be made. ILO Director-General Guy Ryder was encouraged by the action taken by the government of Bangladesh, the country’s employers, workers, international brands, trade unions and NGOs on the Committee to ensure that fair compensation can now be paid to all victims of this terrible tragedy. “This is a milestone but we still have important business to deal with. We must now work together to ensure that accidents can be prevented in the future, and that a robust national employment injury insurance scheme is established so that victims of any future accidents will be swiftly and justly compensated and cared for,” he said. The International Labour Organization (ILO) has acted as chair of the Rana Plaza Coordination Committee since its establishment in October 2013. It has supported the Committee to design one coordinated arrangement for all victims of the accident based on ILO Conventions. In January 2014, the ILO also established the Rana Plaza Donor Trust Fund to support the Committee’s effort to finance the scheme. Bangladesh does not yet have a national employment injury insurance scheme to protect victims of accidents at work although ILO is now working with the Government, employers’ and workers’ organizations, donors and industry partners to establish one.

Country’s export earnings in the July-May period of the financial year 2014-15 fell 6.01 per cent short of the target of $29.94 billion set for the first 11 months of the fiscal year due to a sluggish growth in the export of readymade garment products in the established markets.
Experts and exporters said political unrest and deprecation of the euro against the US dollar took their toll on the export growth and the export earnings target set for the FY 2014-15 could not be achieved. The export earnings in 11 months of the current financial year grew by 2.80 per cent to $28.14 billion from $27.37 billion in the same period of the FY 2013-14, according to the Export Promotion Bureau data released on Monday. The export earnings in May totalled $2.84 billion which is 4.37 per cent higher compared with $2.72 billion in the same period of the FY 2013-14. The EPB data showed that the single-month earnings fell 8.57 per cent short of the target of $3.10 billion. ‘Reaching $33.20 billion export earnings target in the FY15 would not be possible due to depreciation of the euro against the dollar and appreciation of the taka,’ Policy Research Institute executive director Ahsan H Mansur told New Age. He said that the political turmoil also took its toll on the exports as buyers shifted some orders to other competitive countries. Mansur said that losing space in the US market also a reason for the slow export growth as some of the competitor countries like India and Vietnam gained their capacity in the market due to the deprecation of their currencies against the dollar. ‘I think the export earnings in the FY 2014-15 may stand at 31.30 billion with 3 per cent growth,’ he said. The RMG export in the July-May period grew by 3.37 per cent to $22.92 billion compared with that in the same period of last fiscal year. According to the EPB data, the earnings from woven garments in the 11 months stood at $11.75 billion with a 4.43-per cent growth compared with that in the same period last year. The earnings from knitwear grew by 2.28 per cent to $11.67 billion from $10.91 billion in the same period of the FY 2013-14. The earnings from woven fell 4.72 per cent short of its target while knitwear fell 6.31 per cent short, the EPB data showed. Exporters Association of Bangladesh president Abdus Salam Murshedy said that it was expected that the export earnings would witness a slow growth in the current financial year as exporters faced challenges of political turmoil and safety inspection as per the requirement of brands and buyers groups. At the same time deprecation of the euro and appreciation of the taka put negative impact on competitiveness, he said. ‘As an entrepreneur I am very happy that amid various challenges the export earnings in the current financial year registered a positive growth,’ Salam, also a former president of Bangladesh Garment Manufacturers and Exporters Association, told New Age. ‘Now the key challenge for the RMG sector is our decreasing competitive edge with entrepreneurs investing huge amount of money for factory remediation and buyers putting pressure on them to cut prices of products,’ he said. According to the EPB data, leather and leather products export fell by 0.29 per cent to $ 1.02 billion in 11 months of the FY15 compared with that in the same period of the FY14. Footwear export grew by 26.93 per cent to $429.60 million from $338.45 million in the same period of last fiscal year. Home textiles export grew by 1.80 per cent to $742.06 million in the July-May period of the FY15 from $728.91 million in the same period of the FY14. The export of jute and jute products increased by 5.01 per cent and stood at $794.25 million in the period which was $756.34 million in the same period of the FY14. Frozen food export in 11 months of the FY15 fell by 5.19 per cent to $529.92 million from $ 578.44 million in the same period of the FY14.

State Minister for Labour and Employment Mujibul Haque Chunnu has said that the government is very much concerned to ensure safety for the country’s garment industry, reports BSS. He said this while attending an international seminar on “Transformation Challenges and Opportunities in Bangladesh Garment Industry” on June 6 at the Harvard University at Boston in the USA. The seminar was organised jointly by Harvard University South Asia Institute and Harvard University Centre for the Environment and International Sustainable Development Institute (ISDI), Inc, according to a message received in the city Monday. State Minister for Women and Children Affairs Meher Afroze Chumki also spoke at the function, while Labour and Manpower Secretary Mikail Shipar and Consul General of Bangladesh in New York Md Shameem Ahsan were present. The state minister for labour focussed on the measures already taken for workplace safety and compliance.He especially mentioned the amendment to the Bangladesh Labour Act 2006 to ensure workers’ welfare, rights and safety, promoting trade unionism and collective bargaining and adoption of the National Occupational Health and Safety Policy. The State Minister noted that empowerment of women is a priority issue for the government. “The female workers are the driving force for the vibrant RMG sector, and Bangladesh is not lagging behind the other RMG-exporting countries in terms of improving the living conditions and factory safety,” she said.