Bangladesh Quarterly Economic Update (March 2012)

Institutional Document | March 2012

The Bangladesh Quarterly Economic Updates provide recent economic data about the economy in Bangladesh. This issue includes economic data up to March 2012.

GDP growth in FY2012 will moderate to 6.2% because of weak external and domestic demand. The performance of exports, the country’s main growth driver, weakened significantly in the first 9 months of FY2012 because of the lingering debt crisis in the eurozone and weak recovery in the United States. Domestic demand remains weak because of the continued credit-tightening policies. Measures to control public spending to reduce bank borrowing also contributed to compressing domestic demand. Private consumption was depressed by the fall in purchasing power resulting from higher inflation. The government is expected to continue with tighter monetary and fiscal policies under the International Monetary Fund-supported extended credit facility program.

Highlights

  • Macroeconomic management is under pressure.
  • GDP growth in FY2012 projected at 6.2%.
  • Inflation remains a major challenge.
  • Revenue performance continues to be buoyant.
  • ADP implementation remains weak.
  • Export growth slowing as the year progresses.
  • Overall external balance shows lower deficit.
  • Government intends to implement major reforms.

Contents 

  • Macroeconomic Developments
    • Highlights
    • Sector Performance and Economic Growth
    • Inflation
    • Fiscal Management
    • Monetary and Financial Developments
    • Balance of Payments
    • Exchange Rate
    • Capital Market
  • Special Topic: Progress in Poverty Reduction in Bangladesh
    • Poverty Trends and Status
    • Poverty Causes and Characteristics
    • The Government's Poverty Reduction Strategy