Embedded Files
Japan also enters in the research for green economic growth
Japan has taken the initiative of a green gross domestic product (GDP) measurement that reflects the country’s progress in reducing greenhouse gas emissions in its economic growth. The enforcement took place as the government seeks to reduce carbon emissions by 46% in 2030 compared with 2013, which was 9.89 metric tons per capita. Japan, the world’s third-largest economy grew by 1.04 percent on average per year between 1995 and 2020. The Cabinet Office official used the OECD method to calculate pollution-adjusted GDP growth. It also set out plans to issue around 20 trillion yen ($150.40 billion) of "green transition" bonds in order to boost investment and achieve a carbon-neutral society, creating a long-term plan to promote green investment.
Surge in fare prices due increase in price of oil
As the government raised fuel prices by more than 50%, services such as Pathao and Uber could not help but raise their base fares to minimize operating costs. This price hike served as a fatal blow to the public amid ongoing inflation and rising bus fares. Consequently, increasing demand for substitutes, including auto-rickshaws, has become a ray of hope for this industry, which has assured that fares will not soar since costs remain unchanged. However, who is to say that these prices will not rise at all, given that price growth is an outcome of rising demand in basic demand-supply analysis? The changing future of overall transport prices is something to look out for.
https://www.thedailystar.net/business/economy/news/riders-feel-the-pinch-fuel-price-hike-3092331
The US economy continued to shrink in the middle of the fiscal year
Since January, the unemployment rate has been below 4% and either declining or constant. Consumer spending has decreased from 1.8 to 1%. three times as much inflation as the federal reserve's target rate of two percent. Recently, economists and others have raised the prospect that the upcoming US recession will be quite minor. However, even the briefest and most mild recessions have reduced payroll employment by more than 1%, which today equates to more than 1.5 million employees. In June, economist Robert Shiller projected that there was a "good possibility" that the United States would suffer through a recession as a result of a "self-fulfilling prophecy" as people and businesses braced themselves for the worst. He told Bloomberg that "the reality might come from the dread".
Finally the threshold of tax receipts was crossed
Bangladesh saw a 15.51% increase to Tk 300,179 crore in tax collection at the end of fiscal year 2021-2022, crossing the 3 lakh crore threshold for the first time after several failed attempts over the previous few years. This shows that Bangladesh is starting to show signs of recovery from the recession that occurred due to the pandemic and the Russia-Ukraine war. However, even though income tax collection has increased significantly, VAT collection hasn’t risen much, which leads us to doubt about domestic recovery. Due to rising prices in the international market, many institutions failed to achieve enough revenue, which led to a decrease in government receipts of non-NBR revenue.
Wage rate hits a new low of more than half a decade
The wage growth rate in Bangladesh fell to a 7-year low of 6.06% in FY22, as shown by the Wage Rate Index (WRI) of the Bangladesh Bureau of Statistics. The WRI index serves as a tool to measure the changes in the real income of workers in various sectors of Bangladesh’s economy. In Bangladesh, the inflation rate rose to a record high of 6.15% in the last fiscal year, exceeding the wage growth rate and reducing people’s real income. People in the lower middle class and middle class are getting hit the hardest by this situation. These people were already having trouble finding jobs after the pandemic and dealing with high prices for basic goods. A combination of these two leads to a lower standard of living.
https://epaper.thedailystar.net/Home/ShareArticle?OrgId=58b8650986&imageview=1
Party busted as double digits are no longer fun
"A dead fish spoils the entire sea" is now a living reality as we can witness how the Russia-Ukraine war has shaken the globe for half a year now. Eastern Europe is bearing the brunt too, as double digit inflation has persisted in a good number of countries for some time now, forcing dwellers to reduce their daily consumption. The annual inflation rate in Europe was 8.6% in June 2022, up from 8.1% in May. However, in 2021, the rate was 1.9%. Economists are afraid such an increasing inflation rate will ruin their economic growth by FY23. Loans are passed on to protect the situation, but these won’t prove to be healthy for the economy in the long run either.
Bangladesh to apply for a loan as a precautionary
Owing to the conflict between Russia and Ukraine, global prices of oil and gas have effectively increased. Moreover, the global economy is facing far-reaching consequences due to the war and the post pandemic implications. Consequently, Bangladesh too has experienced a negative trend in the foreign currency reserve as payments have to be made at increased prices as Bangladesh is a major importer of oil. The amount of foreign currency was reduced from $45 billion to $39.7 billion. If this situation persists, our foreign currency reserves would be drained quickly and might lead to the government taking out more loans. According to government officials, the government has applied for a loan to prevent further declines in foreign currency. The loan will reduce the dependency of payments on the reserved foreign currency, which will ensure the normal flow of money. Also, payments for imports can be made easily and don't have to worry about the foreign currency dropping. However, if this loan is not repaid quickly, the amount owed will keep increasing, thus draining the foreign reserve even faster.
Page updated
Google Sites
Report abuse