Bangladesh Quarterly Economic Update (June 2010) | Asian Development Bank

Bangladesh Quarterly Economic Update (June 2010)

Institutional Document | June 2010

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to June 2010.

The lagged effects of the global economic recession reduced growth of the country’s two major growth drivers—exports and remittance inflows. Nevertheless, the Bangladesh economy attained a 6.0% GDP growth in FY2010 (according to the Ministry of Finance sources). This was the result of buoyant domestic demand, underpinned by an expansionary fiscal policy, and rapid credit growth. Production of aman (monsoon crop) showed healthy growth. The government continued broad-based policy support to strengthen the incentive regime in agriculture. The industry sector performed well, although its growth potential is held back by acute shortages of power, gas, and other basic infrastructure. The services sector performance also improved.

Highlights

  • GDP growth in FY2010 is preliminarily estimated at 6%.
  • Agriculture sector benefited from broad-based policy support and grew briskly.
  • Industry sector growth was held back by severe power and energy shortages.
  • Managing inflation is emerging as a major macroeconomic challenge.
  • Tax reforms need to be accelerated to boost domestic resource mobilization.
  • Capacity in line agencies needs to be enhanced for efficient implementation of the public investment program.
  • Bangladesh’s growth prospect would depend on large and quick investments in power, energy and transport infrastructure.

Contents 

  • Sector Performance and Economic Growth
  • Inflation
  • Fiscal Management
  • Monetary and Financial Developments
  • Balance of Payments
  • Exchange Rate
  • Capital Markets
  • FY2011 Budget