The Impact of the Global Financial Crisis in Bangladesh
The Impact of the Global Financial Crisis in Bangladesh
20-Aug-2010
Prepared by
Mojadda Alfa Azam
ID.: 10916047
Dept.: Accounting Information System
EMBA, DU
Course name: Micro & Macro Economics
Course no.: 4102
Acknowledgements
I would like to give thanks to Prof. Dr. Tahmina Khatun, professor of AIS Department, EMBA, DU, for her continuous guidance and supreme supervision throughout the course.
I am solely responsible for any remaining errors.
Finally all praise to Almighty Allah for giving us the strength and courage to complete the course.
1. Background and Objectives
Political instability, natural disasters, the global food and fuel price hikes: Bangladesh’s economy has withstood several challenges since 2006. The global financial and economic crisis is another challenge that is testing its resilience coming on top of the former adversities.
The global financial crisis started in mid-2007 has culminated in widespread financial stress among major financial institutions since September 2008. The economic downturn has now degenerated into recession. Projections of the gross domestic product (GDP) provide a gloomy picture for 2009. The 2009 world growth forecast has been revised downward by 1.0-1.5 percentage points to -1.0 to -0.5 percent in March 2009 compared with the last IMF projection of 0.5 percent made in January 20093. While developed countries were the first hit by the recession, developing and least developed countries (LDCs) have also started to feel the consequences of the crisis on commodity prices, trade volumes, access to international financial markets and job losses, though to various degrees. These developments have led to shifting the debate from the causes to the consequences and policy actions required to mitigate the adverse impacts of the crisis.
1.1. The Legacy of the High Food Prices
As most of the developing countries, Bangladesh has no hiding place as the impact of the global financial
20-Aug-2010
Prepared by
Mojadda Alfa Azam
ID.: 10916047
Dept.: Accounting Information System
EMBA, DU
Course name: Micro & Macro Economics
Course no.: 4102
Acknowledgements
I would like to give thanks to Prof. Dr. Tahmina Khatun, professor of AIS Department, EMBA, DU, for her continuous guidance and supreme supervision throughout the course.
I am solely responsible for any remaining errors.
Finally all praise to Almighty Allah for giving us the strength and courage to complete the course.
1. Background and Objectives
Political instability, natural disasters, the global food and fuel price hikes: Bangladesh’s economy has withstood several challenges since 2006. The global financial and economic crisis is another challenge that is testing its resilience coming on top of the former adversities.
The global financial crisis started in mid-2007 has culminated in widespread financial stress among major financial institutions since September 2008. The economic downturn has now degenerated into recession. Projections of the gross domestic product (GDP) provide a gloomy picture for 2009. The 2009 world growth forecast has been revised downward by 1.0-1.5 percentage points to -1.0 to -0.5 percent in March 2009 compared with the last IMF projection of 0.5 percent made in January 20093. While developed countries were the first hit by the recession, developing and least developed countries (LDCs) have also started to feel the consequences of the crisis on commodity prices, trade volumes, access to international financial markets and job losses, though to various degrees. These developments have led to shifting the debate from the causes to the consequences and policy actions required to mitigate the adverse impacts of the crisis.
1.1. The Legacy of the High Food Prices
As most of the developing countries, Bangladesh has no hiding place as the impact of the global financial
References: ----------------------- |(2000) |(2004-05) |(2003-04) |(2005-06) |(2006-07) |