Economic Condition Analysis

Topic: Economic Condition of Bangladesh during fall 2010.

Introduction: though the world economy has face a global scotchal rescission at the fiscal year of 2009-2010, Bangladesh is non likewise much affected by this. If we compare the various economic data of the last quarter of 2009 and 2010, we can justify the augurs above. In this report, the four macro aggregate is selected and these are 1) Inflation 2) gross domestic product 3) Import 4) Export. These four aggregates are highly interrelated with each other.

1) Inflation:

According to the Bangladesh Bureau of statistic, Bangladesh is facing a up trend fanfare trend. At the calendar month of September 2009, the inflation rate 4.6, whereas as September 2010, it becomes 7.61. According to point to point base

The reason behind this inflation is as follow.

At the number one of year of 2009, the follow of crude barrel has been reduced to below $45, which has been increased near twice recently. As a turn up cost of production has been increased and lead to inflation.

Year disbursement for industrial loan
2008-200919972.69 Core
2009-201025875.86 Core



Weak infrastructure is another reason for inflation. If we see, the electrical energy and gas supply for the industries is not sufficient.



As a result, the watery money is invested in non productive sector (Like stock market) and flows in market. As money supply increase more than goods/ service of process produced, thats why inflation happen. If we see the table above, the industrial loan disbursement has been increased but there is not sufficient scope to invest that.

Syndicate or ingredient is another reason for p sift inflation. For example, if we see the price of rice currently, there is no reason of hike except this. This is the month of December and there is enough Aman (A seasonal type of rice) rice in market. But it incurs a good amount of cost to reach from producer to consumer and lead to inflation.

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