Bangladesh Quarterly Economic Update (March 2005) | Asian Development Bank

Bangladesh Quarterly Economic Update (March 2005)

Institutional Document | March 2005

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to March 2005.

GDP growth in FY2005 is estimated at 5.3%, slightly lower than 5.5% in the preceding year, mainly due to the adverse impact of the July–September 2004 floods. The growth will be underpinned by the expansion in both domestic and external demand. There is a clear sign of steady increase in private investment as indicated by the surge in credit, particularly to industry and agriculture sectors, an increase in imports of capital goods, and most heartening, an upsurge in foreign direct investment inflows. External demand remains buoyant, as the immediate fears of a post-multifiber agreement (MFA) withdrawal scenario on textiles exports begin to recede. External risks do remain—a sharp depreciation of the US dollar, a sharp increase in US interest rates, and higher petroleum prices could have adverse knock-on effects for Bangladesh.

Highlights

  • Despite severe floods and external shocks, economic performance remains solid.
  • The economy is expected to grow at 5.3% in fiscal year (FY) 2005, only marginally lower than that recorded in FY2004.
  • Despite considerable pressures, the fiscal and current account deficits are expected to be moderate.
  • The current revenue collection has fallen short of target. There is an urgent need to increase revenue–GDP ratio, this is essential for increasing public investment needed for propelling the economy on a higher growth path for achieving the millennium development goals (MDGs).
  • Inflation edged up mainly due to higher domestic food prices and increase in fuel prices.
  • The external sector shows robust performance with steady increase in external trade, and workers remittances.
  • Several policy initiatives and infrastructure developments are needed to face the challenges of the termination of multifiber arrangement (MFA).

Contents 

  • Macroeconomic Developments
    • 2004 Floods
    • Agriculture
    • Industry
    • Services
    • Economic Growth
    • Fiscal Management
    • Monetary Developments
    • Balance of Payments
    • Inflation and Exchange Rates
    • Political Developments
  • Improving Chittagong Port for Trade Facilitation
    • Background
    • Issues
    • Outlook
    • ADB's Support
  • Public–Private Partnership for Efficient Delivery of Urban Primary Health Care Services
    • Introduction
    • Urban Primary Health Care Project
    • Cost Analysis
    • Changes in Health Outcomes and Health Equities
    • Conclusions