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Thursday, December 23, 2010

ADB's update on Bangladesh Economy

ADB released its regular Bangladesh Quarterly Economic Update (September 2010 issue). The highlights of the update are as follows:

  • GDP growth of 5.8% in FY2010 is respectable considering the continued effects of the global recession;
  • Higher growth in FY2011 is expected if the current trend of export growth is sustained and the domestic economy performs strongly;
  • Infrastructure shortages need to be quickly addressed and labor productivity increased to enhance growth prospects;
  • Sharp slowdown in remittance growth is a concern and could affect GDP growth by depressing domestic demand;
  • Food prices are rising causing hardships for the poor, especially in rural areas;
  • High growth in broad money and private sector credit is fuelling inflation;
  • Revenue performance has been steadily improving;
  • Export and import growth were strong during the first quarter of FY2011.

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