Bangladesh Quarterly Economic Update (June 2008) | Asian Development Bank

Bangladesh Quarterly Economic Update (June 2008)

Institutional Document | June 2008

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to June 2008.

Gross domestic product (GDP) growth is estimated at 6.2% in FY2008, a slight decline from 6.4% in FY2007. The growth performance came as a relief considering the effects of natural disasters, and the reduced business confidence prevailing through the first half of the fiscal year. Private consumption (74.5% of GDP) aided by the buoyant growth of remittances was the key driving force. Total investment as a share of GDP (24.2%) declined for the second successive year, as private investment growth (7.5% in FY2008 compared with 12.2% in FY2007) moderated. Public investment declined sharply because of the annual development program's underperformance. Foreign direct investment also declined. Gross national savings in FY2008 rose sharply to 29.2% of GDP from 28.7% in FY2007 because of the surge in remittances.

Highlights

  • Gross domestic product (GDP) growth is estimated at 6.2% for FY2008.
  • Agriculture and service sectors performed well in the second half of the fiscal year.
  • Strong revenue performance was aided by reform-oriented interventions.
  • Accommodative monetary policy could fuel inflation, if bank credit is not channeled to the economy’s productive sectors.
  • Pickup in exports, surge in workers’ remittances, and higher external assistance strengthened the balance of payments.
  • Higher international prices and the shortfall in domestic production resulted in higher food-grain prices and fueled inflation.

Contents 

  • Macroeconomic Developments
    • Sector Performance and Economic Growth
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Exchange Rate
    • Capital Market
  • The FY2009 Budget
    • Revenue Measures
    • Tax and Tariff Policy Reforms
    • Expenditure Measures
    • Fiscal Deficit and Its Financing
  • Annex