macro economy
CHAPTER 1
MACROECONOMIC SITUATION
After an impressive growth performance for almost six years, the world economy has entered a period of uncertainty due to a financial turmoil triggered by the subprime mortgage crisis in the
United States of America (USA). During 2002 to 2007, the world economic growth averaged 4.5 percent per annum compared to 3 percent in the 1990s. The sudden gloom in world economic prospects has come as a surprise in view of the persistent economic growth and stability. The crisis initially affected advanced economies and then its contagion spread over emerging markets and low-income countries, albeit, in varying degrees. Advanced economies were first hit mainly by the systemic banking crisis in the USA and Europe. Emerging markets with well-developed financial systems were initially affected, in most cases, by cross-border financial linkages through capital flows, stock market investors, and exchange rates. In less-developed countries, the growth and trade experienced major setbacks. The World Economic Outlook of April 2008 projects global growth to slow from 1.5 percent in 2008 to 3.9 percent in 2009 before recovering somewhat in 2010. A year later, April 2009 issue of Outlook forecasts the global growth to contract by 1.3 percent in 2009, lowest ever in last 60 years.
The economy of Bangladesh continue to demonstrate considerable resilience during FY2008-09 despite the twin shocks arising from global recessions and the adverse effects of the consecutive floods and the cyclone-Sidar of the last fiscal year (FY2007-08). The economy is estimated to have grown at a rate of 5.9 percent, slightly below the growth rate (6.2 percent) of FY2007-08.
The key feature of the economic performance during FY2008-09 is the strong recovery in agriculture sector coupled with moderate growth in industry and service sector.
The impact of the ongoing global financial crisis on Bangladesh economy has not been as severe as it was anticipated,
MACROECONOMIC SITUATION
After an impressive growth performance for almost six years, the world economy has entered a period of uncertainty due to a financial turmoil triggered by the subprime mortgage crisis in the
United States of America (USA). During 2002 to 2007, the world economic growth averaged 4.5 percent per annum compared to 3 percent in the 1990s. The sudden gloom in world economic prospects has come as a surprise in view of the persistent economic growth and stability. The crisis initially affected advanced economies and then its contagion spread over emerging markets and low-income countries, albeit, in varying degrees. Advanced economies were first hit mainly by the systemic banking crisis in the USA and Europe. Emerging markets with well-developed financial systems were initially affected, in most cases, by cross-border financial linkages through capital flows, stock market investors, and exchange rates. In less-developed countries, the growth and trade experienced major setbacks. The World Economic Outlook of April 2008 projects global growth to slow from 1.5 percent in 2008 to 3.9 percent in 2009 before recovering somewhat in 2010. A year later, April 2009 issue of Outlook forecasts the global growth to contract by 1.3 percent in 2009, lowest ever in last 60 years.
The economy of Bangladesh continue to demonstrate considerable resilience during FY2008-09 despite the twin shocks arising from global recessions and the adverse effects of the consecutive floods and the cyclone-Sidar of the last fiscal year (FY2007-08). The economy is estimated to have grown at a rate of 5.9 percent, slightly below the growth rate (6.2 percent) of FY2007-08.
The key feature of the economic performance during FY2008-09 is the strong recovery in agriculture sector coupled with moderate growth in industry and service sector.
The impact of the ongoing global financial crisis on Bangladesh economy has not been as severe as it was anticipated,