Bangladesh Quarterly Economic Update (September 2010)
The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to September 2010.
Considering the impacts of the global economic recession on other developing countries, Bangladesh attained reasonably high GDP growth of 5.8% in FY2010, slightly higher than the 5.7% growth in FY2009. Although the late unfolding of the effects of the global crisis negatively affected Bangladesh’s exports and remittances in FY2010, a pickup in domestic demand neutralized the impact. The better than expected growth was made possible by a boost in consumption, stimulated by credit expansion to the private sector and a rise in public sector wages. In addition, robust growth in the agriculture sector along with satisfactory growth in the services sector more than compensated for the lower industry sector growth. Growth performance is expected to improve in FY2011, if the trend of export growth observed so far can be maintained. The country could grow at a higher rate, if the pressing infrastructure constraints in the power and energy, ports, and urban services subsectors are urgently removed and measures for enhancing labor productivity adopted. Economic reforms, especially reforms in the trade regime, revenue mobilization, and government development spending, and reduction of the cost of doing business, are essential for higher economic growth.
- GDP growth of 5.8% in FY2010 is respectable considering the continued effects of the global recession.
- Higher growth in FY2011 is expected if the current trend of export growth is sustained and the domestic economy performs strongly.
- Infrastructure shortages need to be quickly addressed and labor productivity increased to enhance growth prospects.
- Sharp slowdown in remittance growth is a concern and could affect GDP growth by depressing domestic demand.
- Food prices are rising causing hardships for the poor, especially in rural areas.
- High growth in broad money and private sector credit is fuelling inflation.
- Revenue performance has been steadily improving.
- Export and import growth were strong during the first quarter of FY2011.
- Macroeconomic Developments
- Sector Performance and Economic Growth
- Economic Growth
- Fiscal Management
- Monetary and Financial Developments
- Balance of Payments
- Exchange Rate
- Capital Markets