Bangladesh

Bangladesh Economic Forecast

Bangladesh Economic Outlook

According to a projection released by the statistical office on 16 May, GDP will grow 6.0% in FY 2023 (July 2022–June 2023). This would roughly be in line with expectations and one of the best performances in Asia but slower compared to last year. The economy has been knocked by higher inflation at home and weaker demand for garments abroad, with growth in private spending, fixed investment and exports having likely slowed. More positively, public spending growth has likely accelerated. In other news, after a searing heatwave in late April, a cyclone battered the country’s south coast in May. Both the heatwave and the cyclone caused power shortages, knocking economic activity and signaling the downside risk posed to the economy by climate change.

Bangladesh Inflation

Inflation inched down to 9.2% in April (March: 9.3%) as food prices rose less. Inflation should be lower in CY 2023 than in CY 2022 on a tougher base effect. The removal of subsidies and controls on the exchange rate will be a key factor to watch ahead, as the government angles to receive further tranches of IMF financing.

This chart displays Economic Growth (GDP, annual variation in %) for Bangladesh from 2013 to 2022.

Bangladesh Economic Data

2017 2018 2019 2020 2021
Population (million) 159.7 161.4 163.0 164.7 166.7
GDP (USD bn) 296 325 353 375 416
GDP per capita (USD) 1,874 2,033 2,188 2,302 2,525
GDP (BDT bn) 23,243,073,000,000 26,392,479,000,000 29,514,288,000,000 31,704,694,000,000 35,301,848,000,000
Economic Growth (Nominal GDP, ann. var. %) 12.0 13.5 11.8 7.4 11.3
Economic Growth (GDP, ann. var. %) 7.3 7.9 3.4 6.9 7.1
Private Consumption (ann. var. %) 6.3 9.4 4.9 3.0 8.0
Government Consumption (ann. var. %) 7.2 5.3 13.4 2.0 6.9
Total Investment (ann. var. %) 8.4 12.1 6.9 3.9 8.1
Industry (ann. var. %) 8.3 10.2 11.6 3.6 10.3
Unemployment (% of active population, aop) 4.4 4.4 4.4 5.2 5.1
Fiscal Balance (% of GDP) -4.2 -4.1 -5.4 -4.8 -3.6
Public Debt (% of GDP) 28.3 29.6 32.0 34.5 35.6
Money (ann. var. of M2 %) 10.9 9.2 9.9 12.6 13.6
Inflation (CPI, ann. var. %, eop) 5.8 5.4 5.7 5.3 6.1
Inflation (CPI, ann. var. %, aop) 5.7 5.5 5.6 5.7 5.5
Exchange Rate (BDT per USD, eop) 83 84 85 85 86
Exchange Rate (BDT per USD, aop) 81.3 83.6 84.5 84.9 85.1
Current Account Balance (USD bn) -6.4 -7.8 -3.1 0.2 -15.5
Current Account Balance (% of GDP) -2.0 -2.2 -0.8 0.0 -3.3
Merchandise Trade Balance (USD bn) -12.3 -16.0 -15.6 -16.4 -32.5
Merchandise Exports (USD bn) 34.8 38.6 39.0 32.4 42.0
Merchandise Imports (USD bn) 47.1 54.6 54.6 48.8 74.5
Merchandise Exports (ann. var. %) 2.0 11.0 1.1 -17.0 29.5
Merchandise Imports (ann. var. %) 16.3 16.0 0.1 -10.6 52.5
Foreign Direct Investment (USD bn) 2.2 3.6 2.9 2.6 2.9
International Reserves (USD bn) 33.4 32.0 32.7 43.2 46.2
International Reserves (months of imports) 8.5 7.0 7.2 10.6 7.4
External Debt (USD bn) 51.0 57.1 62.4 73.5 91.4
External Debt (% of GDP) 15.7 16.2 16.6 17.7 19.6

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