Bangladesh

Bangladesh Economic Forecast

Bangladesh Economic Outlook

The economy appears to have weakened so far in FY 2023 (July 2022–June 2023). The chief culprit has been weakness in the global economy; merchandise exports expanded 10% in July–January compared to 34% in FY 2022. That said, in the same period, remittances remained relatively robust, rising 4% year on year (FY 2022: minus 15%), largely due to the global reopening from Covid-19. Meanwhile, higher energy prices have further hurt economic growth, with a hike in fuel prices in August likely denting private consumption. In addition, the weakness in the external sector has hit international reserves. This led the government to secure a financing agreement from the IMF in November, with final approval from the Fund’s board granted on 30 January for a USD 4.7 billion loan. This development means that Bangladesh, unlike its neighbors Pakistan and Sri Lanka, is highly unlikely to suffer a balance of payments crisis for the foreseeable future.

Bangladesh Inflation

Inflation eased to 8.6% in January from 8.7% in December. Inflation is seen cooling further in 2023 as commodity prices and domestic demand ease. That said, it will likely linger at elevated levels, stoked by a weaker taka. On 15 January, the Central Bank raised its key policy rate by 25 basis points to 6.00% to contain inflation.

Bangladesh Economic Data

2017 2018 2019 2020 2021
Population (million) 159.7 161.4 163.0 164.7 166.7
GDP (USD bn) 292 319 351 374 417
GDP per capita (USD) 1 1 2 2 2
GDP (BDT bn) 23 26 29 31 35
Economic Growth (Nominal GDP, ann. var. %) 12.0 13.5 11.8 7.4 11.3
Economic Growth (GDP, ann. var. %) 6.6 7.3 7.9 3.4 6.9
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 4.0 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 5.4 5.2
Fiscal Balance (% of GDP) -4.2 -4.1 -5.4 -4.8 -3.6
Public Debt (% of GDP) 28.6 29.6 31.7 34.2 35.5
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) 82.8 83.6 84.9 84.6 85.7
Exchange Rate (BDT per USD, aop) 81.2 83.8 84.4 84.9 85.0
Current Account Balance (USD bn) -6.4 -7.8 -3.1 0.2 -15.5
Current Account Balance (% of GDP) -2.2 -2.4 -0.9 0.0 -3.7
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) 17.5 17.9 17.8 19.7 21.9

Free Sample Report

Interested in Bangladesh economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest