Bangladesh Quarterly Economic Update (December 2008) | Asian Development Bank

Bangladesh Quarterly Economic Update (December 2008)

Institutional Document | December 2008

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to December 2008.

Before the onset of the global financial crisis, a 6.5% growth target for FY2009 appeared attainable. With the financial crisis in the advanced economies still unfolding and recession likely to be longer than earlier anticipated, a growth rate in the range of 5.5%–6.0% now seems more likely, with the balance of risk being on the lower side of the range. The drop in consumer spending in importing countries, because of income losses and looming economic uncertainties, will have moderating effects on demand for textiles (76% of Bangladesh’s exports), and more pronounced impacts on high-end products such as frozen foods and leather products, which together make up the bulk of Bangladesh’s exports. A slowdown in remittance flows will also affect growth by reducing domestic consumption and investment demand.

Higlights

  • Gross domestic product (GDP) growth is estimated to range from 5.5% to 6.0% in FY2009.
  • The global financial crisis and a longer than expected recession affected growth outlook.
  • Exports show signs of slowing with decreasing global demand.
  • Remittance growth is slowing.
  • Foreign exchange reserves will remain at a safe level because of slower growth in imports.
  • Revenue collection is likely to post major shortfall.
  • Inflationary pressures continue to ease.

Contents 

  • Macroeconomic Developments
    • Sector Performance and Economic Growth
    • Inflation
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Exchange Rate
    • Capital Market
  • The Role of Migration and Remittances in Bangladesh's Development
    • Trends and Profile of International Labor Migration
    • Trends and Regional Pattern of Remittance Inflow
    • Development Impacts of Migration and Remittance Inflow
    • Addressing Problems of Labor Migration
    • Removing Barriers to Remittance Inflows
    • Concluding Observations