Quarterly Economic Update - Bangladesh

Abstract

The late unfolding of the impacts of the global economic recession affected performance of the Bangladesh economy in the first half (July–December) of FY2010. Investment remained sluggish, and exports—one of the key drivers of growth—performed badly, posting a decline. Remittances, the other major growth driver, held up well, but in this case also, the growth rate declined. Although signs of a rebound can be read from a pickup in the opening of import letters of credit (L/Cs) and higher growth in private sector credit, signaling better performance in the second half, growth in FY2010 is expected to slip to 5.5% from 5.9% in FY2009