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

Bangladesh Quarterly Economic Update (March 2007)

Institutional Document | March 2007

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

Gross domestic product (GDP) is projected to grow by 6.5% in FY2007, down from 6.7% in FY2006 because of moderating agricultural growth following the post-flood high growth of FY2006 (Figure 9). Industry continues to grow steadily—a tribute to strong performance in export-oriented manufacturing. In line with this, 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. The country needs to significantly improve infrastructure, including power and transport, to sustain higher GDP growth over the medium term.


  • Gross domestic product (GDP) is projected to grow by 6.5% in FY2007.
  • Increasing traffic is creating an enormous challenge for the country to improve the capacity of the Dhaka–Chittagong Transport Corridor.
  • Despite prudent fiscal management, revenue collection continues to be disappointing.
  • Even with a cautious monetary policy, broad money growth remains high because of excess liquidity in the banking system.
  • Robust growth in overseas workers’ remittances contributed to the higher current account surplus, offsetting the increased trade deficit.
  • Inflationary pressures heightened with accelerating food prices.


  • Macroeconomic Developments
    • Sectoral Performances and Economic Growth
    • Fiscal Management
    • Monetary Developments
    • Balance of Payments
    • Inflation and Exchange Rates
    • Capital Market
  • The Dhaka–Chittagong Transport Corridor
    • Constraints in the Transport Corridor
    • Options and Challenges
    • Conclusion
  • Business Process Outsourcing: High Potential
    • Global Trends in Outsourcing
    • Drivers of Offshore Outsourcing Growth
    • The Asian Experience
    • Opportunities for Bangladesh
    • Future Challenges
    • Conclusion