Regulatory crackdowns on the shadow banking system in China, trade war between China and the US, natural Bangladesh Economic Review 2019 Cover Page Preface & Introduction Contents List of Abbreviations and Acronyms Socio-Economic Indicators of Bangladesh Executive Summary. The robust growth experienced up to the present time, driven by the global recovery is finally starting to lose momentum on rising trade risks, sluggish investment and rising debt levels. The IMF Press Center is a password-protected site for working journalists. Bangladesh leaped up 7 places in the Global Competitiveness Index from 2017, but it ranked the lowest amongst its East and South Asian neighbors in Ease of Doing Business Ranking 2018. Bangladesh ranks 40th among 193 countries this year and will rise to 25th in 2034, a spot currently held by Belgium, showed the latest edition of the WELT, produced by London-based Centre for Economics and Business Research (CEBR), an international economic forecaster. <> But in 2011, the US economy was 21.2 percent of world GDP. endobj In FY 2018, growth of exports to the traditional markets have out-performed exports to the non-traditional market. While the economy still has significant potential with favorable demographics, Like RMG exports, remittance flows increased by 17% to reach USD 14.9 billion, equivalent to about 5.4% of the GDP. The country has made excellent progress in expanding electricity supply, but further steps need to be taken to satisfy the demand for electricity which is rapidly increasing with the growing economy. These measures will ensure fairer distribution of the benefits of robust growth. Still, this is a remarkable performance for an old world economy. In the long run, the report said, many Asian economies will rise through the ranks of the WELT as these countries cash in on their demographic dividends. <> Bangladesh has been ranked 41st among the largest economies in the world in 2019, up from the 43rd position since last year, according to an analysis by a UK based think tank. Value Chain Analysis and Market Assessment for Timber Market in Bangladesh, Forward Linkage Support for Women Owned Businesses (WOBs),, E-Commerce in Bangladesh Struggling to Capitalize on Opportunity, Biscuits and Confectioneries Industry of Bangladesh. Public investment to GDP ratio increased while private investment to GDP ratio decreased. Bangladesh Development Update. Bangladesh Economic Review 2019Q1 3 Global growth moderated to a small extent at the end of2018, butis expected to start toriseagain from 2019. Star Business Report. its macroeconomic policy framework and advance a range of structural measures. Bangladesh is on track to graduate from Least Development Country (LDC) status in 2024 and till 2027, it will get the Everything But Arms (EBA) benefits in the EU markets. Ready-made garment (RMG) exports, which accounted for 83.4% of total exports, increased by 8.8% in terms of nominal dollars. %PDF-1.5 Likewise, per capita national income increased to US$1,909 in FY2018-19 from US$1,751 in FY2017-18. Public and private investment were important contributors to the high GDP growth rate in 2018. 98% of the Bangladesh population are ethnic Bengalis with the remaining 2% made up from Biharis and other ethnic tribes. According to the Human Development Report 2018, Bangladesh is ranked 136 out of 189 countries and territories with a Human Development Index (HDI) value for 2017 of 0.608 which puts the country in the medium human development category. Economic growth in Bangladesh continues to be strong with stable inflation. �P�$�v�ر�l���M��'v7O�f�Iv��;�)�$KB�y����9���|���s���q�c��8�1�q�c��8�W:4T�).�_L9I]+`ݯҼwR�m��5�wH�����'�~5��3��������rG��\����HKHNKNI��� ��XXZ�dcc�f������2��G8�aR �"�V��&�wZ�?j����_t�~u����?^d��"�����b�n����]>����o/U�������[3����^��{mA��o_[��XY_]�X[Y[]�_\��_���9=19���ѱ���+C#�ϴ��HM��������H�Qw�1��p1��{�h���՚4q �ӫ�_#�OFt�>��?��Oɟ^�~2���I���%~��+ �l\zss���ؽks��Wo�^۽��u���ޛ�{�n�WHo\�qw��mIڹ~�i������������X_�`G��S��9���"��)�@8�;�k WB jacks up GDP growth estimate. The more competitive a country is, the more likely it … Rising cost of labor and strict enforcement of safety standards in RMG manufacturing will increase cost of production, threatening the price competitiveness of the country’s RMG exports in the global market. Bangladesh Bank took another step forward in making its vast repository of data accessible to the general public. �f�@Z*EV9���J")e �Yp�0���E��ُR�@yQ�g9/�Be���8ؒ�SM�㼣��j�wLvw��l�_O�ɨ�1�����/��⮇�~�>|!���v(Q�+�)��K2��i�̔[0�e[F����3�@�1�S��c�uhGB�3��8�'5�����2|R������b:T���r�Bv�&���-�,?�&��Fx���q�x��w3*���ɦ��*��u������m�ξ��>�.�ζ�w��Y����I����=�� ��w�(?zE�빨�����GuPY�\�S.n����vO�5��0�1�q���q����l~�]�w�"�mx�fqR���u���Sd�g�Σ��'sAp�ڀ������!_�]�|m���(���+��b|�(ǟ�r 3� 簻 2020 LightCastle Partners. <>>> Bangladesh has been forecasted to continue its impressive economic performance and social development in the short run. 3 0 obj Macro Chapters Chapter 1 :Macroeconomic Situation Chapter 2 :GDP, Saving and Investment Chapter 3 :Prices, Wages and Employmen helped the economy to diversify away from the agricultural sector to a more stream Therefore, Bangladesh must devote resources to the development and production of non-RMG products, such as leather, which may have a promising future in the global market. Bangladesh Economic Review 2019H1 3 Global growth has started to slow down going into the second half of 2019. Over the last 27 years, the HDI value of Bangladesh increased by 57.1% and GNI per capita increased by 178.6%. Headline inflation, which stands at 5.8%, was moderated by low levels of non-food inflation. ]1�Ø���l����ο����|���>\9�hchogs���b���Gx0_E�����0��n�/{��2�CCe�粙5s���|�4c0j��{l��]껹��X��=���>�����������qBSS�o�T�S��A�A���k���֨��,e��L�0Xz�2j��Q���p��T��g�~4���J�[#��W��_������7�m)�-`ՁR�oh��8��E���:��]�V�����V�f!�9P#���������������o���,V�\{g��"Qd��� ��~�|~�Y�-�x�ZE��|�7����K���>��}X�c�o���3�:��Ų�V�=��4v��;�����F]}cLl����:ơ��Ey�ި�Td5���jͫ9�� ��1��CX2�cb��ev]&ET%+�l@HWTV%&%�u��/�IHO#l�?y*�q�Bx���&�v�� ��"�����y��|�� ��ݣW�F��U�˒c��㵁K#���n������i��&�N �؛�gH��Hvltl����rwO&�y��znh���7f���7r��v�%��s���t��I��3zWN��%utt��LN�Ų��#��zz|�uk�� f��A�b������y�n �Ћ��@���bq&&†�fV�a]�ؚ_\�. (2018). “Though our view is that it has reached its high water mark and moving forward the deficit and its trade disputes will start to hold it back. Once dubbed “basket case” because of extreme poverty following the Liberation War in 1971, Bangladesh has achieved global recognition for making exceptional progress in human development (Economist, 2012). 2019 Bangladesh Economic Prospects. As the country continues its remarkable progress, policymakers should focus on a few key areas of improvement including a stable macroeconomic structure, an efficient financial sector and a dynamic electricity market. 2018 marked a 5-year run of continuous increase in the country’s GDP growth rate, a trend that is also forecasted to continue (LankaBangla Asset Management, 2019). Bangladesh Bank (BB) sold over USD 2.3 billion as an act of intervention to adjust the exchange rate. 2 0 obj Authors: Farah Hamud Khan, Business Consultant and Dipa Sultana, Senior Associate, LightCastle Partners, This article was originally published here This is, however, below the 7.9 percent GDP growth rate recorded in 2018. In order to strengthen the financial position and distribution of utilities and ensure more efficient consumption, a cost-based pricing mechanism could be adapted. In 2019 its share had risen to 24.8 percent, its highest share since 2007. However, Bangladesh Bank should allow more exchange rate flexibility in order to prevent further reserve depletion and to avoid the risk of a more volatile exchange market. stream Given the country’s sustained economic growth and the evolving dynamics of global trade, Bangladesh must make a diligent attempt to expand its export profile beyond RMG products. Use the free Adobe Acrobat Reader to view this PDF file. continue to play an important role in promoting private consumption and external Growth of out-migration to Saudi Arabia reduced to only 1.2% in the FY 2018 as the Saudi government stopped recruitment of foreign workers in 12 job categories in which majority of Bangladeshi low-skilled migrant workers were employed. 6 0 obj 4 0 obj Economic growth in Bangladesh continues to be strong with stable inflation. The Maldives will also fall from 149th to 145th. Bangladesh Automotive Industry: A Roadmap to the Future, Bangladesh Healthcare Industry: The Thriving Industry that is Growing Faster than the GDP. “Indeed, their share of world GDP is forecast to rise to 42 percent by 2034. 5 0 obj endobj ]�j�8_]S[^Y�v�n�r��h��ɮ��ٵ�����ݍ��ͅ;ۋ���o��msg}ow$������/��Փ$���?�B�`0G=&�x�У��"�?h��]��t�sH�����dX�o�Z����h����2� �г����� ��.+���ʉ�������wppt���b�F�5d ���0�z�Xj}�5�}����s�1��I0���t�O撀��x������7.��^�v���o�5�ذ�%9�w[������l[����H��1v)��q��p0D�n���!��[�?�d���L����N�-�u��"W7>_I--�ͦ�hd2�@ ,���TAx ����H���!K"��Μ��z�Q���? The annual rate of GDP growth is forecast to slow to an average of 7.3 percent between 2020 and 2025. The country’s Logistics Performance Index has dropped over the last two years, signaling a significant concern for local and foreign investors. +1 (212) 419-5770 <> Data from the Monthly Economic Trends publication can now be easily downloaded by anyone interested, free of cost, into an Excel file . 7 0 obj Trade tensions came to the fore with the US and China imposing substantial tariffs on each other’s export sectors. Asia and Pacific Dept, Free Download. The arrival of Rohingya refugees, however, will test the resilience of the country’s economy and its ability to maintain the social development momentum while providing humanitarian support. endobj LankaBangla Asset Management. The two most prominent examples are the Philippines, which will enter the top 25 largest economies reaching 22nd place in 2034, and Bangladesh, it said. The overall budget deficit increased due to a fiscal deficit worth 4.5% of GDP in FY 2018. It is expected to overtake Germany to become fourth largest in 2026 and Japan to become the third largest in 2034. The country needs to allocate more members of the judiciary system to solve the high number of NPLs cases. Bangladesh has been ranked 41st among the largest economies in the world in 2019, up from the 43rd position since last year, according to an analysis by a UK based think tank.