State of the Bangladesh Economy in FY2007-08 And Some Early Signals Regarding FY2008-09 (First Reading)

As Bangladesh enters into the second quarter of Y2008-09, a number of challenges confront the economy. The confidence generated through the strong resilience, demonstrated by overcoming the formidable difficulties faced in FY2007-08, has given way to uncertainties originating from global financial crisis and the political transition. FY08 will be remembered for the consecutive floods, cyclone Sidr, uncertainties with regard to savings and investment as a consequence of some of the steps taken by the Caretaker Government (CTG) and the rise in food prices driving up the inflation. FY08 also saw important institutional reforms which hopefully will leave positive impact on subsequent economic governance. It is encouraging to also note that after considerable uncertainties there are positive developments with regard to transition to democratic governance through free and fair national elections.