Bangladesh Quarterly Economic Update (December 2013) | Asian Development Bank

Bangladesh Quarterly Economic Update (December 2013)

Institutional Document | December 2013

The Bangladesh Quarterly Economic Update provides analysis and data about the economy in Bangladesh. In this issue, it features the evaluation of ADB's Road Network Improvement and Maintenance Project.

Notwithstanding challenging global and domestic environment, gross domestic product (GDP) growth rate was healthy at 6% in FY2013. However, economic outlook for FY2014 remains subdued due to decline in remittances and weak domestic demand affected by prolonged unrest in the run up to the national election on 5 January 2014. In FY2014, economic growth will mostly rely on exports and domestic absorption. For the sectors, agriculture growth is expected to rise because of the lower base in the past two years. The brisk industry sector growth in FY2013 is expected to moderate because of work stoppages and supply disruptions caused by political unrest. This decrease in industrial activity will likely slow service sector growth.

Highlights

  • Lower GDP growth is expected in FY2014 as private consumption and investment were affected by pre-election political unrest.
  • GDP growth in FY2014 will mostly rely on exports as domestic demand will remain weak due to decline in remittances.
  • Agriculture growth is expected to rise in FY2014 due to the lower base in the past 2 years.
  • Industry sector growth will moderate because of economic disruptions.
  • Service sector growth will slow due to weaker industry and pre-election unrest.
  • Food inflation is rising but nonfood inflation remains low.
  • Revenue slowed by disrupted economic activities and sluggish imports.
  • Private credit flow decreased due to the sluggish business environment.
  • Despite a decline in remittance growth, the lower trade deficit increased the current account surplus.

Contents 

  • Macroeconomic Developments
    • Highlights
    • Sector Performance and Economic Growth
    • Inflation
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Exchange Rate
    • Capital Market
  • Special Topic: Evaluation of ADB's Road Network Improvement and Maintenance Project in Bangladesh
    • Project Description
    • Evaluation of Design and Implementation
    • Evaluation of Performance