Bangladesh Quarterly Economic Update (December 2006) | Asian Development Bank

Bangladesh Quarterly Economic Update (December 2006)

Institutional Document | December 2006

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to December 2006.

Growth domestic product is forecast to grow by 6.5% in FY2007, down from 6.7% in FY2006. Growth is expected to moderate to reflect more normal agriculture growth following the post-flood high-growth of last year. Industry is expected to grow steadily, propelled by export-oriented manufacturing. The services sector is expected to record strong growth. The country faces several downside risks in its near- to medium-term prospects. These include political disruption affecting the economy and infrastructure constraints, including power shortage.

Highlights

  • Gross domestic product (GDP) is projected to grow by 6.5% in FY2007.
  • Growth in agriculture is likely to moderate from the post-flood high growth of preceding year.
  • The industry sector, lifted by strong external demand, continues to show robust performance.
  • Bangladesh faces several downside risks including political disruption and infrastructure constraints, particularly power shortage.
  • Weak revenue collection poses considerable risk to fiscal sustainability.
  • Despite tight monetary policy, high money and credit growth continues.
  • Aided by robust growth in exports and workers’ remittances, the current account shows higher surplus even with strong growth of imports.
  • Inflationary pressures have moderated with food prices easing.

Contents 

  • Macroeconomic Developments
    • Agriculture
    • Industry and Services
    • Economic Growth
    • Fiscal Management
    • Monetary Developments
    • Balance of Payments
    • Inflation and Exchange Rates
    • Capital Market Update
  • Information Technology Industry
    • Industry Outlook
    • Firm Size and Workforce
    • Challenges
    • Moving the Industry Forward
    • Conclusion