Bangladesh Quarterly Economic Update (September-December 2012)
The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to December 2012.
Increasing investment is essential to boost medium-term growth prospects. A slowdown in export growth will affect capacity expansion of export and linked industries. The growth in import of capital goods has significantly slowed; capital machinery imports contracted by 14.1% in FY2012. Foreign direct investment inflows will be affected by lack of available land and shortages in electricity and trade logistics infrastructure. The prolonged downturn of the global economy, which dampened the country’s export growth prospects, highlights the need for rebalancing sources of growth, i.e., increasing investment and expanding capacity for production aiming at the domestic market. To enhance private investment in line with the Sixth Five-Year Plan target, higher investment is needed to reduce electricity shortages.
- GDP growth is expected to be lower in FY2013; anticipated investment did not materialize.
- Agriculture growth is expected to increase.
- Lower external and domestic demand will depress industry growth.
- Services sector growth will be lower due to lower industry and trade activities.
- Food inflation is moderating but rising nonfood inflation is a concern.
- Revenue outturn is on target.
- Electricity shortages are affecting investment and total factor productivity growth.
- A better business climate is needed to attract foreign direct investment.
- Export and import growth low since the beginning of FY2013.
- Higher growth in workers’ remittances raised the current account from deficit to surplus.
- Macroeconomic Developments
- Sector Performance and Economic Growth
- Fiscal Management
- Monetary and Financial Developments
- Balance of Payments
- Exchange Rate
- Capital Market
- Special Topic: ADB Assistance for the Agricultural and Natural Resources Sector
- Sector Performance, Problems, and Opportunities
- Government’s Sector Strategy
- ADB Sector Experience and Assistance Program