CPD Working Paper 55
State of the Bangladesh Economy in FY06
Early Signals and Immediate Outlook
This report has been prepared as part of CPD’s ongoing assessment of macroeconomic performance of Bangladesh under CPD’s programme titled Independent Review of Bangladesh’s Development (IRBD). Based on data and information on the dynamics of major macroeconomic variables during July-December 2005, the analysis attempts to trace and track the movements of key macroeconomic performance indicators including in such areas as: public finance, monetary and financial sector, real economy and external balance. In presenting the analysis of some of the trends in the economy, the review takes note of the robust trends in terms of private sector investment, good prospects of foodgrain production, moderate growth of exports, and buoyant flow of remittances. However, in the absence of significant rise in the net flow of foreign aid and mobilisation of domestic resources, the report apprehends that quality of fiscal balance may deteriorate further in the next few months. The report makes a number of suggestions to address the policy challenges emanated from rising inflation, high interest rate, dwindling reserves and deteriorating balance of payment.
Contributor: Debapriya Bhattacharya
Publication Period: January 2006