Bangladesh Quarterly Economic Update (September 2013)
The Bangladesh Quarterly Economic Updates provide analysis and data about the economy in Bangladesh.
The economy continues to maintain growth momentum. Although at 6.0%, gross domestic product (GDP) growth in FY2013 was lower than 6.2% in FY2012, this quite respectable growth was attained in a challenging global and domestic environment. The slight moderation in growth was due to weaker aggregate demand, as private investment fell and consumption remained subdued, with imports remaining flat and private credit growth slowing. The growing political uncertainty ahead of the national elections encouraged consumers to adopt a more cautious approach to spending and investors to postpone major investment decisions. However, robust remittance inflows and more exports to traditional markets and expansion into newer export destinations, such as Brazil, Canada, the People’s Republic of China, India, Japan, the Republic of Korea, and South Africa, together with higher public investment, partly offset lower aggregate demand.
- At 6.0%, GDP growth in FY2013 remained respectable.
- Agriculture growth slowed to 2.2% as falling prices affected crop production.
- Industry grew by 9.0%, led by stronger growth in construction and small-scale manufacturing.
- Services growth declined to 5.7% because of stagnant imports and slower trade and transport services growth.
- Inflation declined in FY2013, with the fall in food and nonfood prices.
- Fiscal deficit in FY2013 remained within prudent limits.
- Sluggish business environment slowed private credit flow.
- High remittance growth along with lower trade deficit raised the FY2013 current account surplus.
- A better business climate and higher private sector participation in infrastructure development needed to boost domestic and foreign investment.
- More productive jobs needed to ensure inclusive economic growth.
- Political stability is critical for shifting the Bangladesh economy to a higher growth trajectory.
- Macroeconomic Developments
- Sector Performance and Economic Growth
- Fiscal Management
- Monetary and Financial Developments
- Balance of Payments
- Exchange Rate
- Capital Market