Showing posts from January, 2011

Market publisher's report on Bangladesh

Bangladesh Business Forecast Report Q1 2011

We expect Bangladesh’s economy to cool down in FY 2010/11 (July-June) with GDP growth coming in at 5.6% after provisional data showed the economy growing at 6.0% in the preceding fiscal year. As the current political climate remains fragile due to increasing angst between the two main political parties, the resulting unrest will likely hold back economic potential. Despite the recent strength of the economy’s export sector and our forecast for outperformance in H111, we expect private consumption to do the opposite due to high inflation and flattening remittances creating a drag on overall economic growth.

The country is set to experience further political instability as political unrest grows over the eviction of former prime minister and current opposition leader Begum Khaleda Zia from her home of 30 years. The opposition party, the Bangladesh National Party has called two hartals (strikes) in the space of two weeks following Zia’s eviction,…