World Bank2013-09-052013-09-052004-05-26https://hdl.handle.net/10986/15671The report reviews recent economic developments, showing economic growth continues to its path, and, aided by global economic recovery, export growth remains strong. The forex market has been stable since the national currency (taka) was floated in by the end-May 2003. The fiscal stance for FY04 remains expansionary, but within prudent limits, and without straining fiscal sustainability, whereas the monetary policy stance - tightened considerably last summer to facilitate exchange rate liberalization - is becoming increasingly adaptable, in recognition of the favorable macro-financial conditions, seemingly on a prudent course. Higher growth in the 1990s also translated into sharper declines in income poverty. Notwithstanding the impressive gains thus far, the magnitude of remaining development challenges is enormous. In June 2003, the Government adopted its first ever medium-term macroeconomic framework, which underpins its poverty reduction strategy, and should contribute to high growth, and fast-paced poverty reduction. The path of the fiscal policy in the medium-term framework, is consistent with Bangladesh's reform needs, and public debt sustainability. And, despite recent deterioration, the public debt stock appears sustainable. However, Bangladesh remains vulnerable to the scheduled phase out of the Multi-Fiber Arrangement (MFA) quotas from January 2005. The report estimates GDP growth rates would be needed if the stated poverty reduction objectives are to be achieved, and, analytical work suggests that higher growth is likely to come mainly from productivity increases. Regarding the agenda for human development it is indicated that with good foundations already built, Bangladesh should now move swiftly with the second generation reforms needed to further improve human development. These entail complementing increased social spending with significant improvements in the institutional framework for service delivery, as specified in the Interim Poverty Reduction Strategy Paper, with increased efforts to promote decentralization.en-USCC BY 3.0 IGOACCOUNTABILITYANALYTICAL WORKANNUAL OBSERVATIONSARSENICAVERAGE GROWTHBALANCE OF PAYMENTSBANKING SECTORCAPITA GROWTHCAPITAL ACCOUNTCAPITAL GOODSCOMMERCIAL BANKSCOMMUNITY PARTICIPATIONCOMPARATOR COUNTRIESCONSUMER PRICE INDEXCOUNTRY DATACPICURRENCY UNITDEBTDECENTRALIZATIONDEMOCRACYDEVELOPING WORLDDEVELOPMENT GOALSDEVELOPMENT INDICATORSDEVELOPMENT PARTNERSDEVELOPMENT POLICYDEVELOPMENT WORKSDIRECT INVESTMENTECONOMIC ACTIVITYECONOMIC GROWTHECONOMIC MANAGEMENTECONOMISTSEMPLOYMENTEXCHANGE RATEEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORTSEXTERNAL DEBTFINANCIAL MANAGEMENTFOOD PRODUCTIONFOOD SECURITYFOREIGN AIDFOREIGN EXCHANGEGDPGDP PER CAPITAGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTGROWTH PERFORMANCEGROWTH PROCESSGROWTH PROJECTIONSGROWTH PROSPECTSGROWTH RATEHEALTH OUTCOMESHIGH GROWTHHUMAN CAPITALHUMAN DEVELOPMENTHUMAN DIMENSIONSIMPORTSINCOME LEVELSINCOME POVERTYINCREASED DEMANDINFANT MORTALITYINFLATIONINFLATION RATEINFLATION RATESINSTITUTIONAL FRAMEWORKINSTITUTIONAL MEASURESINSURANCEINTEREST RATESINVESTMENT CLIMATEINVESTMENT RATELABOR FORCELIQUIDITYLONG-TERM GROWTHLOW INCOME COUNTRIESLOW-INCOME COUNTRIESMACROECONOMIC ENVIRONMENTMACROECONOMIC FRAMEWORKMACROECONOMIC STABILITYMANUFACTURING SECTORMEDIUM TERMMONETARY POLICYNATIONAL INCOMENATIONAL POVERTYPER CAPITA INCOMEPER-CAPITA INCOMEPOLICY REVIEWPOLICY STANCEPOLLUTIONPOVERTY RATEPOVERTY RATESPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPOVERTY TRENDSPRICE LEVELSPRIMARY EDUCATIONPRIORITY AREASPRIVATE SECTORSPRODUCTIVITY INCREASESPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPURCHASING POWERQUOTASREAL WAGESREDUCING POVERTYRULE OF LAWRURAL POPULATIONSERVICE DELIVERYSOCIAL DEVELOPMENTSOCIAL INDICATORSSOCIAL SECTORSSOCIAL SERVICESSOCIAL SPENDINGSTRUCTURAL BREAKSTRUCTURAL REFORMST-BILLSTAX COLLECTIONTAX REVENUETOTAL FACTOR PRODUCTIVITYTRADE BALANCETRADE DEFICITTRADE TAXESTREASURY BILLSURBAN AREASVALUE ADDEDWAGESWATER SUPPLY ECONOMIC DEVELOPMENTFINANCIAL MECHANISMSCURRENCY MARKETSFISCAL SUSTAINABILITYPRUDENTIAL REGULATIONSMONETARY POLICYEXCHANGE RATE ADJUSTMENTSLIBERALIZATIONMACROECONOMIC POLICYGROWTH PATTERNSPOVERTY INCIDENCEPOVERTY REDUCTION STRATEGIESANALYTICAL METHODSPRODUCTIVITY GROWTHHUMAN DEVELOPMENTREFORM IMPLEMENTATIONSOCIAL SECTOR INVESTMENTINSTITUTIONAL FRAMEWORKDECENTRALIZATIONWorld Bank10.1596/15671