Bangladesh Quarterly Economic Update (June 2007) | Asian Development Bank

Bangladesh Quarterly Economic Update (June 2007)

Institutional Document | June 2007

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to June 2007.

Gross domestic product (GDP) growth is estimated at 6.5% in FY2007, slightly lower than 6.6% in FY2006 because of moderating growth of agriculture following the post-flood high growth of FY2006. Growth was underpinned by steady expansion in manufacturing and continued buoyancy in services. Private consumption was the main driver of growth, bolstered by strong remittance inflows. At 24.3% of GDP, investment during FY2007 was lower than 24.7% in the preceding year caused by a decline in public investment while private investment rose modestly. Showing an upsurge in remittance inflows, gross national savings in FY2007 increased sharply to 29.2% of GDP.

Highlights

  • GDP growth is estimated at 6.5% in FY2007.
  • Growth performance was underpinned by steady expansion of manufacturing and services.
  • Although Bangladesh carried out a few fiscal reform measures, revenue performance remains weak.
  • Even with a cautious monetary policy, broad money growth remains high.
  • Robust growth in exports and workers’ remittances contributed to a favorable balance of payments outcome.
  • Rising domestic demand pressures and an increase in international prices fueled inflation.

Contents 

  • Macroeconomic Developments
    • Sector Performance and Economic Growth
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Inflation and Exchange Rates
    • Capital Market
  • The FY2008 Budget
    • Revenue Measures
    • Tax and Tariff Policy Reforms
    • Expenditure Measures
    • Fiscal Deficit and its Financing
  • Overseas Workers' Remittances
    • Migrants' Destinations
    • Effect on Balance of Payments
    • Absorption of Oil Price Shocks
    • Effects on Households
    • Incentives
    • Recent Surge in Migration
    • Hurdles of Official Transfers
    • Challenges and Threats
    • Improving Inflow of Remittances
    • Conclusion