Bangladesh Quarterly Economic Update (March 2009) | Asian Development Bank

Bangladesh Quarterly Economic Update (March 2009)

Institutional Document | March 2009

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to March 2009.

The prospects for attaining the originally projected gross domestic product (GDP) growth of 6.5% in FY2009 waned as the fiscal year progressed. The economy held up quite well in the first quarter of FY2009, supported by the rise in consumption demand and renewed private investment activity. With the moderation in export and remittance inflows, aggregate demand has started to slow, decreasing growth prospects. Slowing private consumption and investment activity is expected to exert downward pressure on GDP growth. As a result, Bangladesh Bureau of Statistics now estimates GDP growth in the current fiscal year to fall slightly to 5.9% from 6.2% in FY2008. Nonetheless, Bangladesh will perform much better than most other Asian countries.

Highlights

  • Macroeconomic management remains prudent.
  • The Bangladesh economy has begun to be affected by the second-round effects of the global economic crisis, which could reduce the country's near-term growth prospects.
  • Despite slowing growth, Bangladesh will perform better than most other Asian countries.
  • The agriculture sector is poised for robust growth.
  • Moderation in international and domestic demand will curb industry sector growth.
  • Service sector growth will slow due to moderating industry growth and remittance inflows.
  • The Government unveiled a stimulus package to combat the effects of the global economic crisis.
  • Inflation has eased—the result of decreased global commodity prices and improved domestic food supplies.
  • Fiscal revenue will fall short of the target, but the overall deficit will remain well within the budgeted amount.
  • Exports are decelerating, but year-to-date growth remains positive.
  • Robust remittance earnings provide a cushion for the external balance.
  • Foreign reserves continue to grow and remain comfortable.

Contents 

  • Macroeconomic Developments
    • Highlights
    • Sector Performance and Economic Growth
    • Agriculture
    • Industry and Services
    • Industry
    • Services
    • Economic Growth
    • Inflation
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Exchange Rate
    • Capital Market