Bangladesh Quarterly Economic Update (December 2007) | Asian Development Bank

Bangladesh Quarterly Economic Update (December 2007)

Institutional Document | December 2007

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to December 2007.

Gross domestic product (GDP) growth is expected to be below 6% in FY2008 compared with 6.5% in the previous year, because of erosion of business confidence, extensive flooding and the cyclone, and a slowdown in external demand for garments. A turnaround in economic activity is expected in the second half of FY2008 as indicated by recent recovery in exports and growth in private sector credit. The growth outlook points to the need to boost business confidence, restore flood and cyclone-affected infrastructure and livelihoods, and augment external competitiveness.

Highlights

  • GDP growth is estimated to be below 6% in FY2008.
  • Severe floods, a cyclone, and low business confidence affected the economy.
  • Underpricing of energy products poses a major fiscal risk.
  • Exports are gradually increasing with an uptrend in knitwear exports.
  • Despite pressures on the current account, foreign exchange reserves remain comfortable.
  • Containing high inflation remains a major challenge.

Contents 

  • Macroeconomic Developments
    • Sector Performance and Economic Growth
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Inflation and Exchange Rates
    • Capital Market
  • Macroeconomic Impact of Rising Oil Prices
    • Causes
    • Trends
    • Macroeconomic Impact
    • Policy Response
  • Padma Bridge: Socioeconomic Impact
    • Strengthening the Transport Network
    • Benefits of the Bridge
    • Project Preparation Activities
    • Major Challenges