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

Bangladesh Quarterly Economic Update (March 2010)

Institutional Document | March 2010

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

Gross domestic product (GDP) growth in FY2010 is projected at 5.5%, lower than in FY2009. The lagged effects of the global economic crisis on the Bangladesh economy became evident in the last quarter of FY2009, as reflected in the performance of the country's two main growth drivers—exports and remittances. Exports continued to decline during July–March FY2010, primarily due to the decrease in readymade garment (RMG) exports; and the slowing of the growth of remittance inflows with the decline in the export of human resources. Supply-side factors, especially acute shortages of power and energy, also adversely impacted aggregate growth performance. Despite progress in implementing the FY2010 fiscal stimulus package, continued underperformance of the annual development program (ADP) in terms of adding to key infrastructure, affected complementary private investment. With the global economic recovery gradually gaining momentum and the domestic growth drivers picking up in response, GDP is expected to grow at 6.3% in FY2011, in line with the growth pattern observed before the onset of the global crisis.

Highlights

  • The late unfolding of the effects of the global economic recession, and severe energy and power shortages affected growth outlook.
  • GDP growth in FY2010 is projected at 5.5%.
  • Unfavorable weather conditions negatively affected agricultural growth.
  • Industry sector growth is slowly picking up.
  • Inflationary pressures remain a policy concern.
  • Measures need to be continued to contain excess liquidity.
  • Revenue grows robustly in response to reforms.
  • ADP utilization needs to be stepped up.

Contents 

  • Macroeconomic Developments
    • Highlights
    • Sector Performance and Economic Growth
    • Inflation
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Exchange Rate
    • Capital Markets
  • Remittances and Household Welfare
    • Trends of Migration and Remittances
    • Impact of Remittances on Poverty