Quarterly Economic Update - Bangladesh

Abstract

In FY2001 (ending 30 June), Bangladesh achieved robust economic growth with low inflation due mainly to successive bumper harvests and rebounding of growth in the industrial sector. Foodgrain self-sufficiency is no longer a dream - for two consecutive years, the country has produced foodgrains in excess of domestic requirements. The manufacturing sector has also recovered sharply from the lackluster performance of the preceding two years. Despite these encouraging developments, the medium term growth prospects are fragile due to mounting pressures on fiscal and external balances. Restoring macroeconomic stability is a major challenge for the Government in the next fiscal year.