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

Bangladesh Quarterly Economic Update (December 2005)

Institutional Document | December 2005

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

Gross domestic product (GDP) growth is estimated at 6.5% in FY2006, higher than 5.6% in the preceding year, and reflecting a steady increase in domestic and external demand. Private consumption will be the main driver of growth during this period, bolstered by strong remittance inflows. Growth in FY2006 will be underpinned by steady expansion in industry and services, aided by a strong recovery in agriculture. While the strength of the expansion hinges on continued good climatic conditions and favorable external environment, there is also a need to maintain stability in the money and foreign exchange markets and to contain growing inflationary pressures.

Highlights

  • For FY2006, GDP growth is estimated at 6.5%, higher than the 5.6% recorded in FY2005.
  • Agriculture output has rebounded after the flood-induced damages of FY2005.
  • Industry sector shows steady expansion, driven by strong growth in manufacturing.
  • Despite progress in fiscal reforms, revenue collection continues to lag projections.
  • Adverse effects of higher oil prices on balance of payments have been partly moderated by rapid growth in workers’ remittances and better-than-expected export growth.
  • The Taka remains under pressure due to higher import costs for oil and other commodities.
  • Monetary policy continues to accommodate buoyant growth in domestic demand.
  • Inflation is on an uptrend due to the increase in domestic food prices and pass-through effects of higher international prices.

Contents 

  • Macroeconomic Developments
    • Agriculture
    • Industry
    • Services
    • Economic Growth
    • Fiscal Management
    • Monetary Developments
    • Balance of Payments
    • Inflation and Exchange Rates
  • Macroeconomic Impact of Oil Price Increase in Bangladesh
    • Introduction
    • Balance of Payments Impact
    • Fiscal Impact
    • Inflationary Consequences of Higher Petroleum Import Prices
    • Macroeconomic Policy Implications of Higher Petrol Prices
    • Energy Pricing
    • Energy Efficiency
  • Reforming Bangladesh Railway
    • Introduction
    • Railway Operations
    • Challenges Ahead
    • Conclusions