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Year-end Assessment of Bangladesh Economy: Trends and Challenges

Bangladesh Economic Update - Year-end Review 2016

December 2016 YearEnd

The Unnayan Onneshan (UO), an independent multidisciplinary think tank, in its year-end assessment of the economy reveals that medium-term macroeconomic challenges in the forms of stagnation in ratio of private investment to gross domestic product, deceleration in rate of growth in collection of revenue, high concentration of single product in export basket and lower inflow of remittance, coupled with high youth unemployment loom large.

“The causes of elapsing prospects are more institutional. The gradual corrosion of institutions has constrained allocation of resources to channel efficiently into the productive sectors in order for the economy to get higher returns in terms of expanded productive capacity,” observes the last issue of the UO’s monthly Bangladesh Economic Update.

The Unnayan Onneshan notes that the stagnation in the ratio of private investment to gross domestic product (GDP) and ever increasing rise of capital flight, coupled with regulatory unpredictability in economic management have appeared to be the major challenge in the economy.

 

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