Group Name: Thumbs Up

Group Code: SYL 701

Paper Presentation – (Predicting the regional economy and identifying the key drivers)

There are two types of economic indicators.

Economic Situation of Sylhet Region (Using Indicators)

Microeconomic indicator Macroeconomic indicator

Consumer Price Index Real GDP

Remittance Unemployment Rate

Poverty Line Inflation Rate

Money Reserve Currency Exchange Rate

GDP : Sylhet’s GDP is $49.6 billion. Per capita GDP is $5,010. It clearly indicates a high production rate.

Unemployment Rate: The unemployment rate is 7.8%.

Money reserve: According to a report, there is around 11,000 crore (1.4 billion USD) idle money in different financial institutions which is roughly 10% of national budget in 2009.

Economic Situation of Sylhet Region (Using Indicators)

Remittance: About 35% of the total export earning generates from remittance. Among them 90% remittance comes from Sylhet region which is $2433.879 million.

Poverty line: Only 21% of the total population lives under poverty in Sylhet region. This rate is decreasing day by day.

CPI Inflation : CPI inflation rate is approximately 6.0%.

Economic Situation of Sylhet Region (Using Indicators)

Remittance: Current remittance inflow is 14,000 crore taka. It will be around 20,000 crore by 2025.

SEZ : A special economic zone will be established soon at Srehatta, Moulvibazar. It will be a pioneer for many establishment. It will provide job for 40,706 people and also a great source of foreign investment.

Natural Gas: Total natural gas reserve is 14 trillion cubic feet. This huge reserve is a great opportunity for the establishment of many industries.

How will it be in 2025?

Money reserve: Only 21% of total money deposit of Sylhet region is disbursed as loan. It will be 70%-80% by 2025 for the increasing number of industrial establishment.

Establishment: Total number of establishment by NRB’s is 14,171. It will be increased to 30,000 or more by 2025. ICT based production establishment is 1,197. It will be increased to a great number by 2025 because of the growing ICT sector.

Regional Connectivity: If the regional connectivity is enhanced than our region will be benefited by Free Trade Area(FTA) with the seven sister state of India.

Others: proper utilization of other resources like silica, crude oil, silica, coal, hard-rock, Auger, Rubber, tea, bamboo etc will boost the regional economy in 2025 to a greater extent.

How will it be in 2025?

Natural gas: There are about 14 trillion cubic feet of natural gas which can be used for electric power generation, industrial development.

Crude oil : Haripur oil field reserves more than153 million barrels of oil which will fulfil the total 2 year demand of the country.

Peat : About 2.5 million tons of peat reserve was discovered in Moulvibazar of Sylhet division.

Silica glass sand: Shahzibazar of Habigonj district has glass and reserve of about 1.41 million tons which can be used for ceramic industry.

What are the key drivers?

Hard-rock: Total estimated reserve is about 45.6 million cubic meters. (Jaflong, Tamabil, Sylhet)

Tea gardens: Sylhet region produces over 55 million kgs of tea annualy from more than 150 tea estate spread over 40,000 hectors.

Remittance: According to the embassy of Bangladesh in London the total remittance flows from 2009 to 2012 is estimated 2433.879 million USD.

Tourism Industry: It is also a good factor of economic growth in Sylhet region.

What are the key drivers?

Analyze with facts and figuresFactors Current 2025(estimted)

Annual real gdp growth rate(%) 6.0 10.0

Public finance (Regional) (% of GDP)

20.0 25.0

Remittance (US$ billion) 10.0 25.5

CPI Inflation (%) 6.0 5.2

Unemployment rate (%) 7.8 5.0

Poverty Line (%) 21.0 15.0

Analyze with facts and figures

Annu

al rea

l gdp

growth

rate

(%)

Public

finance

(Reg

ional)

(% of

GDP)

Remitta

nce (U

S$ bi

llion)

CPI In

flatio

n (%)

Unemplo

ymen

t rate

(%)

Povert

y Line

(%)

0

5

10

15

20

25

30

35

40

45

50

2025(estimated) Current