Bangladesh Economic Update, May 2012

Gross Domestic Product (GDP) growth has moderated from 6.7 percent in FY11 to 6.3 percent in FY12 due to unfavorable external economics and internal supply constraints. Monetary policy remained accommodative for most of 2011 but gradual tightening is occurring. With the high fiscal deficit and domestic borrowing by Government, monetary policy is now bearing the brunt of macroeconomic policy adjustment. The balance of payments (BoP) is on a deteriorating track, with reserves falling to below three months of imports and export growth turning negative in March 2012. A coordinated policy response is required to ease macroeconomic pressures and improve growth prospects. Key actions include the need to create fiscal space, contain government borrowing to mitigate the risk of crowding out of credit to the private sector, better regulate the capital market, and stimulate investment and job growth in the export sector. Unlike in 2008, Bangladesh has insufficient policy space to avert the negative impact of a global slowdown through fiscal stimulus packages and monetary easing.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2012-05
Subjects:	ADVERSE EFFECT, ADVERSE IMPACT, AGGREGATE DEMAND, BALANCE OF PAYMENTS, BANK BORROWING, BANK CREDIT, BANK FINANCING, BANKING SYSTEM, BASIS POINTS, BENCHMARK, BROAD MONEY, BROKERS, CAPITAL GOODS, CAPITAL MARKET, CASH RESERVE, CENTRAL BANK, CHECKS, COMMERCIAL BANKS, COMMODITIES, COMMODITY, COMMODITY PRICE, COMMODITY PRICES, COMPETITIVENESS, CONSUMER CONFIDENCE, CONSUMER SPENDING, CPI, CREDIT EXPANSION, CREDIT FACILITY, CREDIT FLOW, CREDIT GROWTH, CREDIT LINES, CREDIT SUPPORT, CROWDING OUT, CURRENT ACCOUNT, CURRENT ACCOUNT SURPLUS, DEBT, DEBT CRISIS, DEFICITS, DEPOSIT, DEPOSITS, DEVELOPING COUNTRIES, DISBURSEMENT, DISBURSEMENTS, DISPOSABLE INCOME, DIVERSIFICATION, DOMESTIC BANK, DOMESTIC BORROWING, DOMESTIC MARKET, DOMESTIC PRICES, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ENABLING ENVIRONMENT, EQUIPMENTS, EQUITY FUNDS, EXCESS DEMAND, EXCHANGE COMMISSION, EXCHANGE MARKET, EXCHANGE RATE, EXPANSIONARY POLICIES, EXPORT EARNINGS, EXPORT GROWTH, EXPORT MARKET, EXPORT MARKETS, EXPORT PERFORMANCE, EXPORT SECTOR, EXPORTS, EXPOSURE, EXTERNAL FINANCING, FARMERS, FINANCES, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL SECTOR, FINANCIAL SECTORS, FINANCIAL SYSTEM, FINANCING NEEDS, FISCAL DEFICIT, FISCAL POLICIES, FISCAL POLICY, FLOW OF CREDIT, FOOD PRICE, FOOD PRICES, FORECASTS, FOREIGN ASSETS, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FOREIGN FINANCIAL INSTITUTIONS, FOREIGN FINANCING, FOREIGN INVESTMENT, FOREIGN PORTFOLIO, FOREIGN PORTFOLIO INVESTMENT, FUND MANAGERS, GDP, GLOBAL ECONOMIC PROSPECTS, GLOBAL ECONOMY, GOVERNMENT BORROWING, GOVERNMENT BUDGET, GOVERNMENT BUDGET DEFICIT, GOVERNMENT DEFICIT, GROWTH RATE, GROWTH RATES, HIGH UNEMPLOYMENT, HOLDING, HOUSEHOLDS, HUMAN RESOURCES, INCOME TAX, INFLATION, INFLATIONARY PRESSURES, INTEREST PAYMENTS, INTERMEDIATE INPUTS, INTERNATIONAL BORROWING, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKET, INTERNATIONAL ECONOMY, INTERNATIONAL MARKET, INVESTMENT CLIMATE, INVESTMENT SPENDING, LABOR MARKET, LIQUIDITY, LOAN, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MARKET ENTRY, MARKET PRICE, MARKET SHARE, MERCHANT, METALS, MONETARY FINANCING, MONETARY POLICIES, MONETARY POLICY, MONEY GROWTH, NATIONAL SAVINGS, NEW BUSINESS, OIL, OIL PRICE, OIL PRICES, OPEN MARKET, PAYMENT GUARANTEES, POLICY RESPONSE, PORTFOLIO, PRICE CHANGES, PRICE INCREASES, PRIVATE CONSUMPTION, PRIVATE EQUITY, PRIVATE FINANCING, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRIVATE SAVINGS, PUBLIC EXPENDITURES, PUBLIC INVESTMENT, PUBLIC SAVING, PUBLIC SAVINGS, PUBLIC SPENDING, REAL GDP, REAL WAGES, RECESSION, RECURRENT EXPENDITURE, RECURRENT EXPENDITURES, REGULATORY CAPITAL, REMITTANCE, REMITTANCES, REPO, REPO RATE, REPO WINDOW, RESERVE, RESERVE REQUIREMENT, RESERVES, SAFETY NET, SAVINGS RATE, SECURITIES, SMALL INVESTORS, SOVEREIGN BONDS, STOCK EXCHANGE, STOCK EXCHANGES, STOCK MARKET, STOCKS, SYSTEMIC RISK, SYSTEMIC RISKS, TAX, TAX REGIME, TAX REVENUE, TAX REVENUES, TAX STRUCTURE, TAX SYSTEM, TERMS OF TRADE, TOTAL REVENUE, TRADE CREDIT, TRADE FINANCE, TRADING, UNEMPLOYMENT, UNION, VOLATILITIES, VOLATILITY, VULNERABLE GROUP, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/904361468209659342/Bangladesh-economic-update https://hdl.handle.net/10986/27072
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