Czech economy emerges from recession

The Czech economy has emerged from recession with a revised 0.1-
percent uptick between the first and second quarters of the year,
following a long streak of bleak data, official data showed Tuesday.
The economy shed its recession, defined as two or more successive
quarterly declines, after contracting by a revised 4.8 percent in
the first quarter of this year and by 1.3 percent in the last
quarter of 2008. On an annual basis however, the economy contracted
by 5.5 percent in the second quarter, the fastest decline since the
Czech Republic emerged as an independent state in 1993 , the Czech
Statistical Office said. In the first quarter, Czech gross domestic
product (GDP) contracted by a revised 4.5 percent. In August,
statisticians announced a 4.9- percent annual contraction and a 0.3-
percent growth on a quarterly basis for the second quarter. The
growth between the first two quarters of the year was powered by the
manufacturing and building sectors, as well as by increased
household consumption, statisticians said. But the manufacturing
industry also pulled GDP down on an annual basis, along with net
exports.

Two new sectors to get cash incentives in BANGLADESH

Two new sectors and 15 commodities will enjoy 5 percent to 20
percent cash subsidy in the current fiscal year. These sectors are
finished leather and PET ( polyethylene terephthalate) bottle. In a
circular to all commercial banks, Bangladesh Bank yesterday set the
amounts of subsidy for the sectors. The central bank circular also
made it clear that subsidy for some sectors hit by global recession
will continue this year. The export-oriented local textile sector will
get 5 percent subsidy, frozen fish 12.5 percent and leather goods
17.5 percent. Hogla, fruits and goods made manually from leftover
sugarcane will get 15 percent to 20 percent. Agricultural goods and
processed agri-products will get 20 percent, potato 10 percent,
bicycle 10 percent, bone dust 15 percent, jute goods 10 percent,
hatching eggs and chicks in the poultry industry and light
engineering goods 10 percent, liquid glucose produced in Ishwardi EPZ
20 percent, fully halal meat 20 percent, finished leather 7.5
percent and PET bottle 10 percent.

Oil rises in ASIAN trade

Oil extended its rise in Asian trade Tuesday, lifted in part by
improved investor sentiment about the global economy's recovery
prospects, analysts said. Comments by oil kingpin Saudi Arabia that
the market was "very stable and healthy" were also seen providing
support to prices, they said.

Infrastructure ranks among worst Bangladesh's overall index brighter, says Global Competitiveness Report

Infrastructure in Bangladesh ranks among the worst in the world,
securing only the 126 th position in 133 nations, according to the
Global Competitiveness Report 2009-10 released yesterday.
Bangladesh ranked 122 nd out of the 134 countries surveyed last year.
However, the country moved up 5 notches in the overall index, moving
from last year's 111 th position. Bangladesh lags behind its South
Asian neighbours: India ranked 49 , a step better than last year,
Pakistan remained unchanged at 101 and Sri Lanka stood at 79 , down
from last year's 77 th position. "The Global Competitiveness Report"
(GCR) is an annual publication of the World Economic Forum (WEF). The
Centre for Policy Dialogue (CPD), a partner organisation of the WEF,
released the report at a press conference at its office in Dhaka
yesterday. Dr Debapriya Bhattacharya, distinguished fellow of CPD,
briefed reporters on the Bangladesh part of the report presented by
Khondaker Golam Moazzem, senior research fellow at CPD. The private
think-tank also released the ' Bangladesh Business Environment Study
2009 ' that it conducted simultaneously. Infrastructure is one of
the 12 parameters taken into account for the report. "The poor
supply of electricity was the major concern for almost all
respondents (98 percent), " the report says. More importantly, a
significant deterioration in the level of perception occurred in
2008. "The caretaker government failed to narrow the yawning
demand-supply gap in electricity, although a number of electricity
generation projects, with a total capacity of 1 ,200 megawatts, were
initiated in 2007 and 2008 ," the report says. The GCR shows more
than 80 percent businessmen said infrastructure remained largely
underdeveloped in 2008. They also said railroads and air transport
facilities remain poor in the country. Some 89 respondents
(companies) with assets worth no less than Tk 10 crore were surveyed
in the report, based on 2008 information. "Bangladesh performs well
in the worst group," said Bhattacharya. "Infrastructure is the number
one threat, even a more serious problem than corruption," he said.
Bangladesh can attribute advancements in the overall ranking to
progress made in macroeconomic stability, government and other
public institutions and improvements in the financial market, despite
global meltdown. Most respondents said foreign direct investment (FDI)
related rules were favourable to attract investment. Two-thirds of
the respondents also said an access to bank finance with a good
business plan is not enough. On the business operation and
sophistication index, over 60 percent of the companies found there
was fierce competition in the local market. Bangladesh did not
demonstrate improvements in education, human capital and corruption
indicators. "Two-thirds of the respondents perceived government
efforts to combat corruption and bribery as somewhat unsuccessful in
2008 ," the report shows. Switzerland tops the overall ranking in
'The Global Competitiveness Report 2009-2010 ', replacing the
United States that slipped to the 2 nd position this year. Only two
Asian nations -- Singapore and Japan -- are in the top 10 positions
while the remaining are all European nations. The GCR is one of the
world's most comprehensive and respected assessments of country
competitiveness, offering insight into policies, institutions and
factors driving productivity and then, enabling sustained economic
growth and long term prosperity. The rankings are calculated from both
publicly available data and the Executive Opinion Survey, a
comprehensive annual survey conducted by the WEF together with its
network of partner institutes in the countries covered by the report.

In BANGLADESH july'09 export mark 7% fall

Country's exports front has started hearing alarm bell as exports
shipments in terms of value declined by nearly seven per cent in the
first month of current fiscal against the same month last year.
The data released by the Export Promotion Bureau on Sunday showed
July Exports earning stood at $1.44 billion. As a whole garment
export shipments declined by around three per cent with woven or cut
and sew garment growth at minus 4.66 per cent and knitted garment
saw only 1.77 per cent growth. Home textile saw minus 11 per cent
growth in this July against the same month in the previous year.
'It is definitely alarming for export industry less than 2 per cent
growth no way matches with Bangladesh knitwear industry,' said
Bangladesh Knitwear Manufacturers and Exporters Association president
Fazlul Hoque. Ready made garments alone shared 82 per cent of the
entire export earnings in the reported month. In July 2008
readymade garment exports saw more than 70 per cent growth year on
year as many buyers at that period diverted orders from China to
Bangladesh. Exporters now say the counterparts in China, Vietnam
and India offering low prices. Describing that current negotiations
on orders were not good, Haque said industry might suffer for the
next few months or more. Anwar Ul Alam Chowdhury Parvez former
president of the Bangladesh Garment Manufacturers and Exporters
Association said, ' such decline was anticipated as low rush of
orders forced many factories to downsize production.' 'The
government indecision has greatly contributed to the decline in
garment business,' said Parvez. He points out that the unlike
their competitors in other countries the local exporters were not
getting supports to prevent their eroding competitiveness. He said
government needs to provide certain incentive of the foreign
currencies that exporters earned on the local value addition in
their shipments. 'A single digit bank interest rate has also
become inevitable if Bangladeshi exporters reduce their cost of
productions,' he added. Among the high turnover exports, according
to EPB report, only footwear and tarry towel remained able to
maintain significant growths. Footwear exports turnover amounted at
$21 million, up 13 per cent over previous July while tarry towel $13
million, up 17 per cent. In July, frozen foods turnover has
declined by 50 per cent to $33 million, leather 30 per cent to $15
million, jute goods, 13 per cent to $26 million and raw-jute 44 per
cent to $6 million. Export price index declined by 1.3 per cent in
July and volume index 5.5 per cent.