Bangladesh Bank (BB) Governor Atiur Rahman yesterday said the central bank has intensified financial inclusion movement to ensure sustainable development.

It increased credit flow to agriculture, small and medium enterprises and environment-friendly projects, he said.

"The central bank has taken various steps to help the government ensure sustainable development and equitable economic growth for poverty reduction," the governor said while addressing the reunion of the finance alumni of Dhaka University Finance Department.

During global economic crisis, Bangladesh efficiently maintained macroeconomic balance, he said, adding that despite external and internal risks, sustainable agricultural growth and sensible expansion of service and manufacturing sectors helped Bangladesh achieve a 6.7 percent GDP growth in last fiscal year.

"The government is expecting a 7 percent growth in the current fiscal year. During the last three years, the country achieved 47 percent growth in export, and inflow of remittance also witnessed a 20 percent growth and forex reserve reached $9.35 billion," said the BB governor.

He said the euro zone has been facing a new financial crisis. To avert its negative impacts, the BB will have to closely monitor the possible overall economic risks side by side, playing a proactive role to minimise those risks, he added.

"For achieving long-term sustainable growth, we've to diversify our export products and look for new markets," he said.

"We've to discourage import of unproductive luxurious products and check unnecessary state and social expenditures," he added.

Rahman said Bangladesh needs to continue its hunt for new labour markets, and steps must be taken to increase manpower exports to the existing markets. Internal demand for manpower must be increased through expanding social safety net for the hardcore poor, he added.

The governor said economic cooperation must be strengthened at regional and international level to face possible economic crisis.

Especial emphasis will be given on intensifying intra-regional trade and cooperation through using the regional network such as Asian Clearing Union and Saarc, Rahman added.

The Daily Star/Bangladesh/ 25th Dec 2011