Other South Asia

RGE's Q1 2010 Outlook

Bangladesh: Low export dependence, a consumption-to-GDP ratio of over 70%, and the relatively closed financial system and asset markets cushioned Bangladesh from the global downturn. RGE forecasts Bangladesh to grow in 2010, after growing 5.9% in 2009, as remittances and fiscal stimulus support private and government consumption. Nonetheless, private investment will slow, weak global demand will weigh on textile exports, and job losses abroad might affect remittances with a lag.

Read the Q1 2010 Bangladesh Outlook.

Sri Lanka: Large fiscal spending, monetary easing, and booming foreign investment and asset markets following the end of Sri Lanka’s 27-year civil war have helped the country’s economy recover at a fast pace. Government spending on the rehabilitation of war-affected areas and on infrastructure, and capital inflows due to liberalization and reforms, will help Sri Lanka return to the 6.0% plus growth rates of recent years.

Read the Q1 2010 Sri Lanka Outlook.