ISAS Insights

Against the backdrop of the global economic slowdown, the Bangladesh economy has performed strongly over the past few years. Despite the fallout from the Euro debt crisis still contributing to an uncertain economic environment, the Bangladesh economy has pursued accommodative monetary and fiscal policies. However, if the global economic slowdown is much more prolonged than the current forecasts indicate, the impact on Bangladesh is expected to be adverse. The economy has persevered so far in the face of global recession, but the domestic challenges are manifold with respect to soaring inflation, import-export imbalances, devaluation of the currency, a slow growth of remittances, increasing budget deficit and government borrowing. This paper provides an overview of the Bangladesh economy with respect to its fiscal, monetary and trade performance. The aim is twofold - to assess the current state of the economy, followed by an appraisal of Bangladesh's economic outlook and opportunities ahead.