IDEAS home Printed from
   My bibliography  Save this paper

State of the Bangladesh Economy in FY2007-08 (Second Interim)


  • Mustafizur Rahman et al

    (Centre for Policy Dialogue)


Fiscal year 2008 started its journey in the backdrop of the moderately high growth rate of 6.51 per cent achieved in FY2007. Experience of FY2007 was unique in the history of Bangladesh in the sense that it saw three consecutive governments and declaration of a state of emergency. The new caretaker governments (CTGs) first six months coincided with the second half of FY2007. Despite the challenging scenario, political turmoil and disruption in the economy in the early months of FY2007 (particularly in November- December, 2006) and the uncertainties afflicting the economy during the period following the takeover by the current CTG in January 2007, FY2007 saw a number of positive developments. These included moderately high growth of manufacturing industries (10.01 per cent), robust performance of the export sector (15.69 per cent growth), revitalized capital market (121 per cent growth in DSE market-capitalisation) and high growth of remittance flow (24.5 per cent). However, some disturbing signs were already discernible as FY2007 was drawing to a close : a deteriorating trade balance, weak implementation of public investment programmes, stagnating food grains production and a fall in agricultural credit disbursement. Creeping inflation throughout the year, particularly, rising prices of cereals and fuel originating from increasing world prices of cereals and oil, was already emerging as causes for concern. The wide ranging anticorruption drive added to uncertainties affecting investment environment with consequent negative implications for domestic and foreign investment.

Suggested Citation

  • Mustafizur Rahman et al, 2008. "State of the Bangladesh Economy in FY2007-08 (Second Interim)," Macroeconomics Working Papers 22300, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:macroe:22300

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Bangladesh; Budget; budget analysis;

    JEL classification:

    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eab:macroe:22300. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.