Read more about April’s business and international news
No headway in restoring GSP in US market
The matter of getting back generalized system of preference (GSP) facility for exports to the US market remains uncertain since it was suspended last year. Garment manufacturers have raised wage alongside some other steps to improve conditions but buyers declined to increase prices. Some sought more time to fully comply with rules and regulations.
However, the commerce minister expressing optimism about regaining GSP, said the US conditions would be fulfilled by 30 March. Mr. Tofail Ahmed termed the decision on whether to restore GSP more political than economic. Commerce ministry officials believe the GSP issue might not come up for discussion at the first meeting of Trade and Investment Cooperation Framework Agreement (Ticfa) meeting, likely to be held in Dhaka on April 7, unless Washington wants it. The United States is set to review the suspension of GSP in May.
Melting ice opens new trade route
Over the next 30 years climate change is likely to open up a polar shipping route between the Pacific and Atlantic oceans, cutting travel time to Asia by 40%. That might allow Russia‘s vast oil and gas resources to be exported to China, Japan and south Asia much faster. Expectations are high that the route will complement the Suez Canal as a key waterway for trade to and from Asia.
Thaw in temperatures brought by climate change could bring benefits for Siberian city of Nadym which is one of the Earth’s least hospitable places, shrouded in darkness for half of the year. ‘The entire centre of gravity of the world economy is shifting to Nadym,’ said mayor Stanislav Shegurov at a recent meeting of Arctic leaders in Norway. Nadym will find itself on the 21st-century equivalent of the ancient silk route.
Myanmar to lease dozen Boeing, Biman adds one
Myanmar Airways is set to order up to a dozen Boeing 737 jets on lease in its largest single fleet expansion as the country opens up to business and tourism. Biman Bangladesh Airlines, however, added one, making it the third Boeing-777-300ER aircraft in the national air fleet. Prime Minister Sheikh Hasina, while inaugurating the Boeing, expressed the hope that Biman would be a feasible organisation.
Meanwhile, Singapore Airlines has begun weighing a potential order for dozens of wide-body jets as it compares Boeing’s revamped 777X against Europe’s Airbus (AIR.PA) A350, The airline is looking at a potential order for as many as 40 777X aircraft in a deal potentially worth $15 billion. Boeing expects nearly half of the global air traffic growth would be driven by the Asia-Pacific region over the next 20 years.
India luxury car market accelerates
German giant Mercedes admits it was “a little surprised” when Indian customers snapped up 125 of its new top-of-the-line S-Class luxury cars costing $250,000 apiece in just 16 days. India’s auto industry has skidded onto an icy patch and is set for a second straight year of decline, but one segment still accelerating is luxury cars.
Analysts at India’s premier auto fair in the capital’s suburb of Greater Noida said for the “really rich”, economic downturns have a “negligible impact” on their luxury spending. The wealthy are much less sensitive to high interest rates and are more resilient overall to downturns, say analysts.
Super-rich heading for London!
Political and financial upheaval in some of the world’s largest emerging economies is reportedly driving a new wave of rich migrants to London’s supercharged property market as a place to park their wealth. Upmarket properties specialist Knight Frank said it had seen online enquiries about British homes from crisis-hit countries such as Argentina, Ukraine and Turkey soar over the past year.
‘There is potentially a further wave of investment headed for the prime central London property market,’ Knight Frank’s Tom Bill was quoted by Reuters as saying. However, the issue of foreign property purchases is politically controversial, with many media reports saying expensive houses and apartments are often bought only as investments and are left unoccupied.
Bangladesh exports to double in 5 years
The country’s export earning is expected to be doubled to US$50 billion in five years. The optimism was expressed at the concluding ceremony of the month-long Dhaka International Trade Fair (DITF) 2014. The exports doubled to around $27 billion from $14 billion in five years between 2012-13 and 2008-09, according to official figures.
Commerce Minister Tofayel Ahmed appreciated the country’s private sector for the achievement and expressed the hope to do better in the coming years. ‘Our businessmen are very efficient and our apparel sector has gained a reputation in the world market to make it possible,’ he told the concluding ceremony.
Tk. 100 crore turnover at Biswa Ijtema!
Biswa Ijtema, the annual congregation of Muslims on the bank of river Turag near Dhaka, this year witnessed sales of goods and services worth over Tk. 100 crore. English daily Dhaka Tribune have the estimate in a report which said around 60 hotels and restaurants and 260 clothes shops were set up on the congregation ground.
A good number of makeshift restaurants, clothes shops and bookshops alongside the permanent ones have mushroomed in the area centring the Ijtema, which is considered the second largest Muslims congregation after Hajj.. Many hawkers from Gazipur, Tongi and Uttara assemble at the 160-acre land of Ijtema there in a bid to make a brisk business. Most businessmen said they made double profit during Ijtema.
‘Quality education needed for high productivity’
The most important factor for long-term economic development is the human capital and even the establishment of good governance is conditional to development of human resources. Senior economist and former caretaker government adviser Wahiduddin Mahmud said this at a public lecture at BRAC Centre Inn in February.
‘Education for all is not enough; rather the poor need quality education and also opportunity to have higher education,’ he said dwelling on the current state of education focused on horizontal expansion of literacy. He regretted that the main driving force of the Bangladesh economy is the unskilled and semi-skilled workforce that can deliver lower productivity. ‘Readymade garments, remittances earning and micro-entrepreneurs are all such sectors. So there is no alternative raise productivity through training and proper education to bring the country to the next stage of development,’ he added.
