Bangladesh Development Update, October 2013
Economic performance has remained resilient to global headwinds and disruptive politics in Bangladesh in FY13. Gross Domestic Product (GDP) growth decelerated for the second year in a row to 6 percent. Disruptions caused by political strife, deepening political tensions relating to the impending pol...
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| Format: | Economic & Sector Work |
| Language: | en_US |
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Washington, DC
2014
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| Online Access: | http://hdl.handle.net/10986/16644 |
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okr-10986-16644 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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en_US |
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adverse impact Aggregate demand Agricultural output agriculture arrears auction balance of payment balance of payments banking sector banking system base year benchmark beneficiaries beneficiary bonded warehouse broad money brokerage brokerage house budget deficit capacity constraints Capital accumulation capital flight capital market capital market activities capitalization child labor commercial banks commodity prices competitive advantage competitiveness conflict of interest consumer demand consumer goods consumer price index consumers consumption growth contingent liabilities contract enforcement corporate governance corporate profit tax cost functions credit growth currency currency depreciation deficit financing deficits deposits developing countries disbursement Disbursements domestic credit downward pressures durable Economic Developments Economic performance excess supply Exchange Commission exchange rate exchange rates expenditure export growth exporters exports External balances external trade external trade deficit Federal Reserve Federal Reserve Bank financial institution financial intermediation financial reforms financial sector financial system fiscal deficit fiscal deficits Fiscal policy fixed investment food price food prices foreign direct investment foreign exchange foreign exchange markets foreign exchange reserve foreign exchange reserves foreign financing foreign investors fraud frauds GDP Generalized System of Preferences global economy global markets government accounts Government expenditure government policy growth rate growth rates holding holdings Household Income human development import imports income tax income tax exemption individual investors Inflation inflation rate inflation rates inflation risk inflationary pressure inflationary pressures information systems infrastructure investments institutional investors insurance interest cost interest rate interest rates international financial market international market international markets international prices international standards inventory investing investment bank investment climate Investment Corporation investment rate investor confidence Joint Stock Companies labor standards Letters of Credit level of inflation liquidity loan loan balances loan classification loan defaults long-term loans M2 macroeconomic conditions Macroeconomic Policy macroeconomic stabilization market capitalization market diversification market exchange rates market index market rate market share market shares maturity monetary discipline monetary policy national saving nominal exchange rate NPL oil price pledges policy response political strife political turmoil political uncertainties political uncertainty portfolio preferential market access price increases price movement price movements private consumption private investment private sector credit production costs public debt public investment public investments purchase price push factors real exchange rate Real GDP recession recurrent expenditures registration system regulatory capacity regulatory capture regulatory oversight remittance remittances reserve return returns Safety Net securities short-term borrowing slowdown small investors stock exchanges stock market stock market volatilities stock prices stocks structural reforms supply disruptions supply side supply-side surplus tax Tax collections tax rate technical assistance total exports total investment trade deficit trade union trade unions trading transparency Trust Funds value added wage rates wages wealth working capital |
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adverse impact Aggregate demand Agricultural output agriculture arrears auction balance of payment balance of payments banking sector banking system base year benchmark beneficiaries beneficiary bonded warehouse broad money brokerage brokerage house budget deficit capacity constraints Capital accumulation capital flight capital market capital market activities capitalization child labor commercial banks commodity prices competitive advantage competitiveness conflict of interest consumer demand consumer goods consumer price index consumers consumption growth contingent liabilities contract enforcement corporate governance corporate profit tax cost functions credit growth currency currency depreciation deficit financing deficits deposits developing countries disbursement Disbursements domestic credit downward pressures durable Economic Developments Economic performance excess supply Exchange Commission exchange rate exchange rates expenditure export growth exporters exports External balances external trade external trade deficit Federal Reserve Federal Reserve Bank financial institution financial intermediation financial reforms financial sector financial system fiscal deficit fiscal deficits Fiscal policy fixed investment food price food prices foreign direct investment foreign exchange foreign exchange markets foreign exchange reserve foreign exchange reserves foreign financing foreign investors fraud frauds GDP Generalized System of Preferences global economy global markets government accounts Government expenditure government policy growth rate growth rates holding holdings Household Income human development import imports income tax income tax exemption individual investors Inflation inflation rate inflation rates inflation risk inflationary pressure inflationary pressures information systems infrastructure investments institutional investors insurance interest cost interest rate interest rates international financial market international market international markets international prices international standards inventory investing investment bank investment climate Investment Corporation investment rate investor confidence Joint Stock Companies labor standards Letters of Credit level of inflation liquidity loan loan balances loan classification loan defaults long-term loans M2 macroeconomic conditions Macroeconomic Policy macroeconomic stabilization market capitalization market diversification market exchange rates market index market rate market share market shares maturity monetary discipline monetary policy national saving nominal exchange rate NPL oil price pledges policy response political strife political turmoil political uncertainties political uncertainty portfolio preferential market access price increases price movement price movements private consumption private investment private sector credit production costs public debt public investment public investments purchase price push factors real exchange rate Real GDP recession recurrent expenditures registration system regulatory capacity regulatory capture regulatory oversight remittance remittances reserve return returns Safety Net securities short-term borrowing slowdown small investors stock exchanges stock market stock market volatilities stock prices stocks structural reforms supply disruptions supply side supply-side surplus tax Tax collections tax rate technical assistance total exports total investment trade deficit trade union trade unions trading transparency Trust Funds value added wage rates wages wealth working capital World Bank Bangladesh Development Update, October 2013 |
| geographic_facet |
South Asia Bangladesh |
| description |
Economic performance has remained resilient to global headwinds and disruptive politics in Bangladesh in FY13. Gross Domestic Product (GDP) growth decelerated for the second year in a row to 6 percent. Disruptions caused by political strife, deepening political tensions relating to the impending political transition and the inadequacies of improvements in the provision of power, gas and infrastructure were the key factors in the growth slowdown. These contributed to weakening investor confidence leading to a 1.2 percent decline in the private investment rate. Recovery in remittance growth contributed to sustaining private consumption growth which combined with a significant rise in public investment and robust increases in exports helped maintain GDP growth above the average 5 percent growth in developing countries in 2013. Growth declined in both the agriculture and service sectors while industrial growth increased slightly. Inflation decelerated but remained high. Annual average inflation declined from 8.7 percent in FY12 to 6.8 percent in FY13. External balances have improved further. The external trade deficit decreased significantly due primarily to an increase in export growth over FY12 and flat import payments. The banking system remains under stress and capital market activities have been weak. Several financial scams and resultant loan defaults in the state-owned commercial banks moved them into a position of insolvency, which needs to be urgently addressed. The most pressing challenges lie in maintaining economic and financial reforms, rebuilding the image of the garment sector, and removing supply bottlenecks. Some structural reforms have moved forward. The International Monetary Fund's extended credit facility is on track with significant progress in strengthening macroeconomic conditions and structural policies under the extended credit facility arrangement. The new value added tax law has moved firmly into the implementation phase; the National Board of Revenue has introduced an online tax registration system; amendments to the Banking Companies Act have been passed and progress is being made in identifying critical weaknesses in the state-owned commercial banks; the FY14 budget introduced revenue reforms such as increasing the corporate profit tax rate on cigarette manufacturing companies and reducing the nominal protection rate to 28.1 percent in FY14 from 28.9 percent in FY13. Removing Bangladesh's favored access to the United States market under the Generalized System of Preferences program may not hurt Bangladesh's garment industry unduly. If the European Union were to suspend Bangladesh's favored access to its markets, Bangladesh could see its total exports fall by as much as 4.1 to 8 percent. |
| format |
Economic & Sector Work |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Bangladesh Development Update, October 2013 |
| title_short |
Bangladesh Development Update, October 2013 |
| title_full |
Bangladesh Development Update, October 2013 |
| title_fullStr |
Bangladesh Development Update, October 2013 |
| title_full_unstemmed |
Bangladesh Development Update, October 2013 |
| title_sort |
bangladesh development update, october 2013 |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://hdl.handle.net/10986/16644 |
| _version_ |
1764435022648967168 |
| spelling |
okr-10986-166442021-04-23T14:03:33Z Bangladesh Development Update, October 2013 World Bank adverse impact Aggregate demand Agricultural output agriculture arrears auction balance of payment balance of payments banking sector banking system base year benchmark beneficiaries beneficiary bonded warehouse broad money brokerage brokerage house budget deficit capacity constraints Capital accumulation capital flight capital market capital market activities capitalization child labor commercial banks commodity prices competitive advantage competitiveness conflict of interest consumer demand consumer goods consumer price index consumers consumption growth contingent liabilities contract enforcement corporate governance corporate profit tax cost functions credit growth currency currency depreciation deficit financing deficits deposits developing countries disbursement Disbursements domestic credit downward pressures durable Economic Developments Economic performance excess supply Exchange Commission exchange rate exchange rates expenditure export growth exporters exports External balances external trade external trade deficit Federal Reserve Federal Reserve Bank financial institution financial intermediation financial reforms financial sector financial system fiscal deficit fiscal deficits Fiscal policy fixed investment food price food prices foreign direct investment foreign exchange foreign exchange markets foreign exchange reserve foreign exchange reserves foreign financing foreign investors fraud frauds GDP Generalized System of Preferences global economy global markets government accounts Government expenditure government policy growth rate growth rates holding holdings Household Income human development import imports income tax income tax exemption individual investors Inflation inflation rate inflation rates inflation risk inflationary pressure inflationary pressures information systems infrastructure investments institutional investors insurance interest cost interest rate interest rates international financial market international market international markets international prices international standards inventory investing investment bank investment climate Investment Corporation investment rate investor confidence Joint Stock Companies labor standards Letters of Credit level of inflation liquidity loan loan balances loan classification loan defaults long-term loans M2 macroeconomic conditions Macroeconomic Policy macroeconomic stabilization market capitalization market diversification market exchange rates market index market rate market share market shares maturity monetary discipline monetary policy national saving nominal exchange rate NPL oil price pledges policy response political strife political turmoil political uncertainties political uncertainty portfolio preferential market access price increases price movement price movements private consumption private investment private sector credit production costs public debt public investment public investments purchase price push factors real exchange rate Real GDP recession recurrent expenditures registration system regulatory capacity regulatory capture regulatory oversight remittance remittances reserve return returns Safety Net securities short-term borrowing slowdown small investors stock exchanges stock market stock market volatilities stock prices stocks structural reforms supply disruptions supply side supply-side surplus tax Tax collections tax rate technical assistance total exports total investment trade deficit trade union trade unions trading transparency Trust Funds value added wage rates wages wealth working capital Economic performance has remained resilient to global headwinds and disruptive politics in Bangladesh in FY13. Gross Domestic Product (GDP) growth decelerated for the second year in a row to 6 percent. Disruptions caused by political strife, deepening political tensions relating to the impending political transition and the inadequacies of improvements in the provision of power, gas and infrastructure were the key factors in the growth slowdown. These contributed to weakening investor confidence leading to a 1.2 percent decline in the private investment rate. Recovery in remittance growth contributed to sustaining private consumption growth which combined with a significant rise in public investment and robust increases in exports helped maintain GDP growth above the average 5 percent growth in developing countries in 2013. Growth declined in both the agriculture and service sectors while industrial growth increased slightly. Inflation decelerated but remained high. Annual average inflation declined from 8.7 percent in FY12 to 6.8 percent in FY13. External balances have improved further. The external trade deficit decreased significantly due primarily to an increase in export growth over FY12 and flat import payments. The banking system remains under stress and capital market activities have been weak. Several financial scams and resultant loan defaults in the state-owned commercial banks moved them into a position of insolvency, which needs to be urgently addressed. The most pressing challenges lie in maintaining economic and financial reforms, rebuilding the image of the garment sector, and removing supply bottlenecks. Some structural reforms have moved forward. The International Monetary Fund's extended credit facility is on track with significant progress in strengthening macroeconomic conditions and structural policies under the extended credit facility arrangement. The new value added tax law has moved firmly into the implementation phase; the National Board of Revenue has introduced an online tax registration system; amendments to the Banking Companies Act have been passed and progress is being made in identifying critical weaknesses in the state-owned commercial banks; the FY14 budget introduced revenue reforms such as increasing the corporate profit tax rate on cigarette manufacturing companies and reducing the nominal protection rate to 28.1 percent in FY14 from 28.9 percent in FY13. Removing Bangladesh's favored access to the United States market under the Generalized System of Preferences program may not hurt Bangladesh's garment industry unduly. If the European Union were to suspend Bangladesh's favored access to its markets, Bangladesh could see its total exports fall by as much as 4.1 to 8 percent. 2014-01-28T16:51:03Z 2014-01-28T16:51:03Z 2013-10 http://hdl.handle.net/10986/16644 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Economic & Sector Work Economic & Sector Work :: Other Social Protection Study South Asia Bangladesh |