Bangladesh Quarterly Economic Update (March 2011)
The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to March 2011.
With strong export performance and rise in domestic demand, official estimates project gross domestic product (GDP) growth in FY2011 to be 6.7%—significantly higher than the average growth (close to 6.0%) during FY2001–FY2010. To make any major impact on poverty reduction, the economy needs to grow at about 8% annually over the medium term, requiring huge investment in infrastructure and skills development. A significant improvement in labor productivity and total factor productivity growth is also essential. To support growth momentum, reforms need to be deepened and public sector agency capacity developed.
- Rising inflation is a major macroeconomic management challenge.
- Agriculture shows brisk growth.
- Domestic demand picks up the slack, as slower remittance growth affects consumption.
- Power and gas shortages constrain industry growth.
- Bangladesh needs to boost investment to attain higher growth target.
- Better enabling environment needed to attract foreign direct investments.
- Reforms support strong growth in revenue.
- Implementation capacity needs to be strengthened to increase public investment in infrastructure.
- Money supply growth remains high, driven by high private credit growth.
- Robust growth in exports leads to pickup in manufacturing.
- Balance of payments comes under pressure as imports grow rapidly and remittance growth decelerates.
- Macroeconomic Developments
- Sector Performance and Economic Growth
- Fiscal Management
- Monetary and Financial Developments
- Balance of Payments
- Exchange Rate
- Capital Market