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.