Ecomonic Trend in Bangladesh

Topics: Central bank, Monetary policy, Inflation Pages: 5 (540 words) Published: June 9, 2013
This assignment deals with economic trend of Bangladesh based on last few years. I am going to analyze some macroeconomic factors to find the economic trend of Bangladesh which is based on Monthly Economic Trend, May 2013, Bangladesh Bank. Bank Interest Rate from 2008-2009 periods to 2012-2013 periods is constant that is 5%. From IB table we notice that from 2008-2009 periods to 2012-2013 periods Inflation Rate is increasing rapidly. In this period 2011-2012 periods hold the highest amount of inflation rate which is 10.62%, but we forecast that this rate will be decline in 2012-2013. Inflation rate is not favorable for any economy and this is happened in close economy where there is less unemployment problem. |% |5-year moving average | |

|12| | |
| | | |
|9 | | |
|6 | | |
|3 | | |
|0 | | |
| |2008 2009 2010 2011 2012 | |
| |2013 2014 | |
| |Forecast | |

Sources: Bangladesh Bank. 2013. Monthly Economic Trends.

Figure 1: Inflation rate of last five years

| |Nominal | | | | |Real effective | |
|Taka/$| | | | | | |FY2001 = 100 | |
|65 | | | | | | | | | |1|
| | | | | | | | | | |0|
| | | | | | | | | | |0|
|2008 2009| |2010| |2011| |2012 | |2013 | |

Source: Bangladesh Bank. 2013. Monthly Economic Trends.

Figure 2: Exchange rate of last five years

Broad money

Credit to other public enterprises

Credit to private sector

Credit to government (net)

%

80

60

40

20

0

–20

|Jan |Jul |Jan |Jul |Jan |Jul |Dec |
|2010 | |2011 | |2012 | | |

Source: Bangladesh Bank. 2013. Monthly Economic Trends.
Figure3: Growth of monetary indicators

$ billion
15

10

5

0

|Jul |Jan |Jul |Jan |Jul |Jan |Jul |Feb |
|2009|2010 | |2011 | |2012 | |2013 |

Source: Bangladesh Bank. 2013. Monthly Economic Trends.

Figure4: Foreign exchange reserve

Foreign exchange reserves increased to $13.8 billion at the end of February from $10.4 billion at the end of June 2012 (Figure 4). As a result FDI inflows improved. My forecast is to pressure on the balance of payments will remain low in 2014. Revenue collection grew by 15.1% in the first 7 months of 2013.

Here I wanted to describe some macroeconomic factors to analyze economic trend of Bangladesh, to complete this I took help from Economic Trend of Bangladesh prepared by ADB in 2013 and I emphasized more on Monthly Economic Trends of Bangladesh Bank 2013 to enrich this assignment.

References:

✓ www.bangladesh-bank.org
✓ Monthly Economic Trend, Bangladesh Bank, May 2013.
✓ Economic Trend of Bangladesh 2013, ADB.

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