World Bank2014-04-152014-04-152014-04-01https://hdl.handle.net/10986/17787Bangladesh moved closer to achieving the sixth five year plan target of reducing extreme poverty to 22.5 percent by 2015 as it sustained healthy gross domestic product (GDP) growth and moderate single digit inflation in FY2014. However, growth this year slowed relative to last year with declining remittances and losses due to political turmoil. Sound macroeconomic management kept inflation in check, although it increased somewhat due to the one-off effects of supply disruptions and wage increases. Official foreign exchange reserves increased to an adequate level as Bangladesh Bank intervened to keep the exchange rate stable. Weak demand for credit reduced interest rates. Monetary policy remained prudent while fiscal management challenged by shortfall in tax revenue, demand for support from sectors adversely affected by the political turmoil, and under-utilization of development budget. The fund's extended credit facility (ECF) is on track. Immediate challenges are to boost investments in power and roads; manage the transition in readymade garments; and stem the decline in remittances.en-USCC BY 3.0 IGOACCOUNTINGAGGREGATE DEMANDASSET RATIOBALANCE OF PAYMENTSBANK ACCOUNTSBANK BORROWINGBANKING ASSETSBANKING SECTORBANKING SYSTEMBROAD MONEYBROKERAGEBROKERAGE HOUSESBUDGET DEFICITBUSINESS BORROWERSCAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL ACCOUNTSCAPITAL ACCUMULATIONCAPITAL GOODSCAPITAL GOODS IMPORTSCAPITAL MARKETCENTRAL BANKCOLLATERALSCOMMERCIAL BANKSCOMMODITY PRICESCOMPETITIVE MARKETCONSUMER CONFIDENCECONSUMER GOODSCONSUMPTION DEMANDCONSUMPTION EXPENDITURESCREDIT ENHANCEMENTCREDIT GROWTHCREDIT INCREASECREDIT SQUEEZECREDIT-WORTHINESSCROP VALUECURRENCYCURRENT ACCOUNTCURRENT ACCOUNT SURPLUSDEBTDEBT SERVICEDEFAULT RISKDEMAND FOR CREDITDEPOSITDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDISBURSEMENTDISPOSABLE INCOMEDOMESTIC CREDITDOMESTIC DEMANDDURABLEECONOMIC DEVELOPMENTSECONOMIC GROWTHEXCESS LIQUIDITYEXCESS SUPPLYEXCHANGE COMMISSIONEXCHANGE RATEEXCHANGE RATE STABILITYEXPENDITUREEXPORT COMPETITIVENESSEXPORT GROWTHEXPORT PERFORMANCEEXPORTERSEXTERNAL BALANCEEXTERNAL BALANCESEXTERNAL BORROWINGEXTERNAL DEBTFINANCIAL HEALTHFINANCIAL MARKETFINANCIAL SUPPORTFINANCIAL SYSTEMFISCAL BURDENFISCAL DEFICITFISCAL POLICYFOOD PRICEFOOD PRICESFOREIGN ASSETFOREIGN ASSETSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN EXCHANGE RESERVESFOREIGN FINANCINGFOREIGN INVESTORSGLOBAL TRADEGOVERNMENT BANKGOVERNMENT BORROWINGGOVERNMENT BUDGETGOVERNMENT POLICIESGOVERNMENT SPENDINGGROWTH PERFORMANCEGROWTH RATEGROWTH RATESHOLDINGHUMAN CAPITALIMBALANCEIMPORTIMPORT GROWTHIMPORTSINCOME TAXINFLATIONINFLATION RATEINFLATIONARY PRESSURESINFORMATION TECHNOLOGYINSTITUTIONAL CAPACITYINTEREST EXPENDITUREINTEREST INCOMEINTEREST RATEINTEREST RATESINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL MARKETINTERNATIONAL STANDARDINTERNATIONAL TRADEINVENTORIESINVESTINGINVESTMENT CLIMATEINVESTMENT DECISIONSINVESTMENT DEMANDINVESTMENT REGULATIONSINVESTMENT RISKINVESTMENT SPENDINGLABOR STANDARDSLENDERSLIQUIDITY PROBLEMLOANLOCAL MARKETMACROECONOMIC MANAGEMENTMACROECONOMIC POLICYMACROECONOMIC STABILITYMARKET CAPITALIZATIONMARKET DISCIPLINEMARKET PARTICIPANTSMARKET PRICEMARKET SHAREMARKET STRUCTUREMARKET TURNOVERMARKET VALUEMATURITYMONETARY AGGREGATESMONETARY POLICYMONETARY PROGRAMMONETARY RESTRAINTMONEY MARKETNATIONAL SAVINGNATIONAL SAVINGSNOMINAL EXCHANGE RATENON-PERFORMING LOANNONPERFORMING LOANSNPLOPPORTUNITY COSTOUTSTANDING STOCKOVERDUE LOANSPOLITICAL CLIMATEPOLITICAL STABILITYPOLITICAL TURMOILPOLITICAL UNCERTAINTIESPOLITICAL UNCERTAINTYPOTENTIAL INVESTORSPOVERTY REDUCTIONPRICE INCREASESPRICE STABILITYPRIVATE CONSUMPTIONPRIVATE CREDITPRIVATE CREDIT GROWTHPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE INVESTORSPRIVATE SECTOR BANKSPRIVATE SECTOR CREDITPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC INVESTMENTPUBLIC SECTOR BANKSRATE OF GROWTHRATE OF RETURNREAL EXCHANGE RATEREAL WAGE GROWTHRECURRENT EXPENDITURESREGULATORY FRAMEWORKREMITTANCEREMITTANCESREPAYMENTSRESERVERESERVE MONEYRESERVE REQUIREMENTRETAIL PRICERETAIL PRICESRETURN ON ASSETRETURNSRISK MANAGEMENTSAFETY NETSSAVINGS CERTIFICATESSECURITIESSETTLEMENTSHAREHOLDERSSHORTFALLSHORTFALLSSLACKSLOWDOWNSOVEREIGN RATINGSTOCK EXCHANGESSTOCK MARKETSTRUCTURAL REFORMSTRUCTURAL REFORMSSUPPLY CAPACITYSUPPLY DISRUPTIONSSUPPLY SHOCKTAXTAX COLLECTIONTELECOMMUNICATIONSTERRORISMTOTAL EXPORTSTRADE CREDITTRADINGTRANSPARENCYTRUST FUNDWEAK DEMANDWORKING CAPITAL10.1596/17787