Bangladesh: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bangladesh
IMF Staff Country Reports, September 18, 2019
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- Bangladesh: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bangladesh
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Bibliographic details
- Published: September 18, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513514239.002
Summary
- Economic growth in Bangladesh continues to be strong with stable inflation.
- Sustained growth in the ready-made garment sector with abundant low-cost labor has helped the economy to diversify away from the agricultural sector to a more manufacturing-based economy.
- Remittance inflows from Bangladeshis overseas continue to play an important role in promoting private consumption and external stability.
- While the economy still has significant potential with favorable demographics, to ensure sustainability and resilience of growth, the country needs to keep upgrading its macroeconomic policy framework and advance a range of structural measures.
Macroeconomic findings
- Growth: economic growth remains strong.
- Inflation: inflation described as stable; Bangladesh Bank should monitor inflation developments closely and stand ready to adjust its stance as needed.
- External sector: remittance inflows support private consumption and external stability.
- Structural transformation: diversification from agriculture toward manufacturing (ready-made garment sector) driven by abundant low-cost labor.
Policy recommendations and reforms
- Monetary policy: Bangladesh Bank should monitor inflation developments closely and stand ready to adjust its stance as needed.
- Exchange rate: a gradual increase in exchange rate flexibility would help buffer the economy against external shocks and preserve the level of reserves.
- Public financial management and governance: continuous improvements in public financial management and frameworks to limit vulnerability to corruption will help the authorities’ goal to reach upper middle-income country status.
- Structural measures: advance a range of structural measures to ensure sustainability and resilience of growth.
Subject areas and keywords
- Subject: Commercial banks, External debt, Financial institutions, Loans, Nonperforming loans, Public debt
- Keywords: Asia and Pacific, authority, Commercial banks, counter-terrorism financing system, CR, debt, Global, government entity, increase FDI flow, inflation development, ISCR, Loans, narrowing current account deficit, Nonperforming loans
Content in this bundle
- 1bgdea2019001