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US financial expert says

Free convertibility of profit can improve investment situation
A visiting US financial ex pert said here Thursday free convertibility of profit could better the Investment situation. particularly of foreign investment, in Bangladesh, reports UNB.
Dr John A Tatom, Assistant Vice-President of the Federal Reserve Bank of St. Louis, also stressed on a transparent and strong capital market In the country.
Tatom was apprising a group of economic writers of different dailies and wire services of the .latest development of US economy at USIS office Thursday afternoon.
He praised steps towards privatisation and improved Infrastructure in Bangladesh and suggested that people should support the liberalisation programme for lasting welfare of the economy.
The US expert, who Is here on a mission lo talk on current state of US economy with various groups, observed that the US economy has started recovering from a prolonged recession, opening up further opportunities for developing economies.
After a lapse of six years from 1986 to 1991, he said, the US economy has begun expanding with resumption of growth in productivity and inflation on decline.
This would benefit particu-
larly the Aslan countries those mostly depend on American market for selling of their produce. Tatom said.
The US expert was. however. not much optimistic about Bangladesh's deriving benefit out of the latest Improved state tn US economy. "I am not sure about Bangladesh but to many a Asian economies including India, it is a good news."
The financial expert said the US economy had a bad time from 1986 upto '91 when the growth of productivity declined and competitiveness suffered. People's real income deteriorated with mounting Inflation which, he said, led to lot of frustrations.
But. Tatom said, productivity growth resumed again early this year. "Evidence is there that things are picking up."
Answering to a question, the US economist refuted the apprehension that the newly formed NAFTA (North American Free Trade Agreement) is a typical trade bloc that may result tn loss of US markets by developing economies.
US Is not going lo form a custom union with Canada and Mexico like the European Economic Community, he said.