Economy of Bangladesh
A Macro Economic Analysis Of Bangladesh.
Submitted By:
Zia Uddin Bablu.
Section: A, Roll: 93,
Batch: 16th
Department of Management Studies,
University of Dhaka.
Submitted To:
Mr. Md. Kazi Raihan Uddin.
Lecturer,
Department of Management Studies,
University of Dhaka.
Date of Submission: 03-04-2013.
contents | Page no. | Introduction | 3 | Fiscal channel | 3-4 | Implication of increased government borrowing | 4 | Monetary channel | 4 | Inflation | 4-6 | Food and non-food inflation | 6-8 | Causes of inflation in recent context of Bangladesh | 8-14 | Trade and current account channel | 14 | Balance of payments | 14-17 | Remittances | 17-19 | Foreign exchange reserves | 19-21 | Gross domestic product(GDP) | 21-29 | References | 30 |
Table of Contents
Introduction:
Against the backdrop of the global economic slowdown, the Bangladesh economy has performed strongly over the past few years. Despite the fallout from the Euro debt crisis still contributing to an uncertain environment, the Bangladesh economy has pursued accommodative monetary and fiscal policies. However, if the global economic slowdown is much more prolonged than the current forecasts indicate, the impact on Bangladesh is expected to be adverse. The economy has persevered so far in the face of global recession, but the domestic challenges are manifold with respect to soaring inflation, import-export imbalances, devaluation of the currency, a slow growth of remittances, increasing budget deficit and government borrowing. The analysis below presents a brief snapshot to show how the Bangladesh economy has performed during the recent past years. It is done here by analyzing the three channels: fiscal, monetary and trade.
Fiscal channel:
The government fiscal management has been mediocre in this regard. Along with spending pressures from fuel subsidies, other sources include spending on agricultural input subsidies and higher cost of crude oil. The government
Submitted By:
Zia Uddin Bablu.
Section: A, Roll: 93,
Batch: 16th
Department of Management Studies,
University of Dhaka.
Submitted To:
Mr. Md. Kazi Raihan Uddin.
Lecturer,
Department of Management Studies,
University of Dhaka.
Date of Submission: 03-04-2013.
contents | Page no. | Introduction | 3 | Fiscal channel | 3-4 | Implication of increased government borrowing | 4 | Monetary channel | 4 | Inflation | 4-6 | Food and non-food inflation | 6-8 | Causes of inflation in recent context of Bangladesh | 8-14 | Trade and current account channel | 14 | Balance of payments | 14-17 | Remittances | 17-19 | Foreign exchange reserves | 19-21 | Gross domestic product(GDP) | 21-29 | References | 30 |
Table of Contents
Introduction:
Against the backdrop of the global economic slowdown, the Bangladesh economy has performed strongly over the past few years. Despite the fallout from the Euro debt crisis still contributing to an uncertain environment, the Bangladesh economy has pursued accommodative monetary and fiscal policies. However, if the global economic slowdown is much more prolonged than the current forecasts indicate, the impact on Bangladesh is expected to be adverse. The economy has persevered so far in the face of global recession, but the domestic challenges are manifold with respect to soaring inflation, import-export imbalances, devaluation of the currency, a slow growth of remittances, increasing budget deficit and government borrowing. The analysis below presents a brief snapshot to show how the Bangladesh economy has performed during the recent past years. It is done here by analyzing the three channels: fiscal, monetary and trade.
Fiscal channel:
The government fiscal management has been mediocre in this regard. Along with spending pressures from fuel subsidies, other sources include spending on agricultural input subsidies and higher cost of crude oil. The government
References: Bangladesh Economic Update. (2011). Food Prices and Inflation Trajectory. Bangladesh Economic Update. Volume 2, No. 1, January-February 2011 Shahiduzzaman, M Ahmed, S. 2012, Explaining Inflation in Bangladesh, PRI Quarterly Policy Briefs on Bangladesh Economy, PRI. Pp.13-16 /Data Accessed on 30 March 2013 at 8 a.m. Ministry of Finance (MoF). 2012, Bangladesh Economic Review FY 2012-13. Dhaka, Bangladesh: Finance Division, Ministry of Finance, Government of Bangladesh /Data Accessed on 29 March 2013 at 8 a.m. Chowdhury, F. A., Hossain, A., Chowdhury, M. 2011. IMF’s Loan and its Implications on Bangladesh Economy. Bangladesh Economic Update, March 2011, Vol. 2, No. 2. Dhaka, Bangladesh: Unnayan Onneshan /Data Accessed on 29 March 2013 at 8 a.m. Ministry of Finance (MoF). 2012, Bangladesh Economic Review FY 2011-12. Dhaka, Bangladesh: Finance Division, Ministry of Finance, Government of Bangladesh/ Accessed 25 March 2013 at 9.05 a.m. Ministry of Finance (MoF). 2012, Macroeconomic Scenario. Dhaka, Bangladesh: Finance Division,Ministry of Finance, Government of Bangladesh / Data Accessed on 26 March 2013 at 10 p.m.