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ECONOMY OF
BANGLADESH
E C O N O M I C S
Muqadas Ilyas
BANGLADESH FACTORIES OPEN AS
ECONOMIC WORRIES TRUMP VIRUS
Bangladesh is suffering through its deadliest surge of
the pandemic, but you wouldn’t know it looking at its
factories, markets and malls.
02
CHALLENGES TO
ECONOMY
Poverty remains a major
challenge along with other
challenges.
Worsening income distribution
and increase in unemployment in
recent years due to less attention
in redistribution.
03
INFLATION
Inflation accelerate in 2011-2012
lead by an increase in food prices
Bangladesh banks have chosen
the inflation rate at nominal
anchor.
Over the last two decades, inflation is
contained. Recent fall in global prices
attributed to some extent to contain
inflation.
INTEREST RATES
Low-interest rates lead to an
increase in private sector credit growth rates, with
some expectations
05
FALL IN INVESTMENT
Recent fall in private sector investment
corresponds with high rates of interest.
However other reasons like global recession,
political uncertainty is there.
Industry transformed from highly agrarian to
industry and service-oriented one
40
30
20
10
0
FISCAL MANAGEMENT FACES
CHALLENGES
High govt. borrowings
for budget, high
service charge for dept
(20% of budet)
Inadequate revenue
mobilization. Low
tax/GDP ratio (8.8%
against global 13.5%)
Revenue Expenditures,
Subsidies very High
BANKING SECTOR
PROBLEMS
PRIVATE BANKS
Default loans, Not very Innovative
STATE OWNED BANKS
Financial scams, Default Loans
REGULATION AND COMPLIANCE
PROBLEMS
Lack of Good Governance, Management Problems
08
CHELLENGES
OF THE
ECONOMY
POLITICAL INSTABILITY
LACK OF GOOD GOVERNANCE
REFORM MEASURES
FACE IMPACT OF CLIMATE CHANGE
09
RISK FACTORS OF THE
ECONOMY
INSUFFICIENT INFRASTRUCTURE
CONSTRAINTS IN DOMESTIC
REVENUE MOBILIZATION
LOW LEVEL OF FINANCIAL
DEVELOPEMENT
Capital market (equity and bond), Insurance
market, hedging/Future markets
Faster Growth rate and improvement of
quality life (poverty reduction) requires:
Regulatory bodies to
be effective.
REGULATORY
BODIES
GOVT. BODIES
PRIVATE
PROMOTION
BODIES
RULES AND
LAWS
Govt. bodies like
BBS, IMED, Planing
commission, to work
efficiently.
Private business
promotion bodies
(BOI, EPB) to be
more effective.
Good governance,
transparency,
accountability and
rule of law.

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Bangladesh (1).pdf

  • 1. ECONOMY OF BANGLADESH E C O N O M I C S Muqadas Ilyas
  • 2. BANGLADESH FACTORIES OPEN AS ECONOMIC WORRIES TRUMP VIRUS Bangladesh is suffering through its deadliest surge of the pandemic, but you wouldn’t know it looking at its factories, markets and malls. 02
  • 3. CHALLENGES TO ECONOMY Poverty remains a major challenge along with other challenges. Worsening income distribution and increase in unemployment in recent years due to less attention in redistribution. 03
  • 4. INFLATION Inflation accelerate in 2011-2012 lead by an increase in food prices Bangladesh banks have chosen the inflation rate at nominal anchor. Over the last two decades, inflation is contained. Recent fall in global prices attributed to some extent to contain inflation.
  • 5. INTEREST RATES Low-interest rates lead to an increase in private sector credit growth rates, with some expectations 05
  • 6. FALL IN INVESTMENT Recent fall in private sector investment corresponds with high rates of interest. However other reasons like global recession, political uncertainty is there. Industry transformed from highly agrarian to industry and service-oriented one 40 30 20 10 0
  • 7. FISCAL MANAGEMENT FACES CHALLENGES High govt. borrowings for budget, high service charge for dept (20% of budet) Inadequate revenue mobilization. Low tax/GDP ratio (8.8% against global 13.5%) Revenue Expenditures, Subsidies very High
  • 8. BANKING SECTOR PROBLEMS PRIVATE BANKS Default loans, Not very Innovative STATE OWNED BANKS Financial scams, Default Loans REGULATION AND COMPLIANCE PROBLEMS Lack of Good Governance, Management Problems 08
  • 9. CHELLENGES OF THE ECONOMY POLITICAL INSTABILITY LACK OF GOOD GOVERNANCE REFORM MEASURES FACE IMPACT OF CLIMATE CHANGE 09
  • 10. RISK FACTORS OF THE ECONOMY INSUFFICIENT INFRASTRUCTURE CONSTRAINTS IN DOMESTIC REVENUE MOBILIZATION LOW LEVEL OF FINANCIAL DEVELOPEMENT Capital market (equity and bond), Insurance market, hedging/Future markets
  • 11. Faster Growth rate and improvement of quality life (poverty reduction) requires: Regulatory bodies to be effective. REGULATORY BODIES GOVT. BODIES PRIVATE PROMOTION BODIES RULES AND LAWS Govt. bodies like BBS, IMED, Planing commission, to work efficiently. Private business promotion bodies (BOI, EPB) to be more effective. Good governance, transparency, accountability and rule of law.