Macroeconomic Forecast Bangladesh

BMI View: We believe the economy expanded by 5.9% in FY2005/06 (July-June), up from 5.4% in FY04/05, thanks to strong domestic demand and rising remittances. However, we forecast a slowdown to 5.5% in FY06/07, because of disruption caused in the run-up to and in the aftermath of the January 2007 general election. Political noise is likely to rise ahead of the vote, and the outcome may well be disputed, adding to the uncertainty. Meanwhile, foreign investors may put plans on hold, at least until a new government has been confirmed in office. Government finances are also a concern, with the

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