Investor Presentaiton

ANNUAL REPORT 2018-2019 ANNUAL REPORT 2018-2019 Outlook 2019 Downside risks have intensified in the global economy due to the adverse developments-including further US-China tariffs, US auto tariffs, or a no-deal Brexit- sap conidence, weaken investment, dislocate global supply chains, and severely slow global growth below the baseline. Climate change remains an overarching threat to health and livelihoods in many countries, as well as to global economic activity. Domestic policy mitigation strategies are failing to muster wide societal support in some countries. While growth prospects are subdued, there is a substantial upside potential from the implementation of structural reforms that improve the business climate and encourage job creation. Increased public sector efficiency and measures to foster private sector investments will be key to meet large infrastructure needs in electricity, transport, water supply and sanitation, and climate change prevention and mitigation. Estimates of the infrastructure spending required to meet the Sustainable Development Goals in EMDES by 2030 range between 4.5 to 8.2 percent of GDP, depending on policy choices. Improving access to reliable and affordable electricity, enhancing the quality of logistics and transport infrastructure, leveraging digital technologies, and improving institutional quality could help unlock a large untapped growth potential and contribute to poverty alleviation. Raising agricultural productivity could also help boost development opportunities and increase resilience to extreme weather events in regions with large exposed populations. Strengthening the role of social safety nets and active labor market policies is also key to manage risks and promote access to productive employment. In all, amid soft growth prospects and heightened risks, both advanced economies and EMDES need to be prepared to undertake coordinated policy action in the event of a severe global slowdown that threatens to inflict major economic losses and set back progress on poverty alleviation and inequality mitigation. Bangladesh Economic Outlook Bangladesh is now the 30th largest economy in the world, on GDP ranking based on PPP, published by the IMF. In South Asia, Bangladesh is now the second largest economy after India - Budget Speech 2019-20. Bangladesh has been able to continue with her economic development and high growth trajectory despite having to face challenges at the national and international level. According to the estimates of Bangladesh Bureau of Statistics (BBS) the economy had GDP growth of 8.13 percent in the year 2018-19 while per capita income reached $ 1,827 recording an increase of over 9 percent. Size of the country's GDP now starts at US $ 302.4 billion. Driven by industry, the economy continues to grow at an impressive rate. Sound macroeconomic policies and resilient domestic demand have led to growth in manufacturing and construction industries on the supply side. On the demand side, growth is led by private consumption and exports. In addition country has substantially improved electricity generation and a bumper agricultural harvest further stimulated growth. Target is to raise growth rate to "double digit" by FY2023-24. Overall investment - public and private sector combined - rose to 31.56 percent of GDP in the year 2018-19 which was 31.23 percent last year. Government is working on the overall development of investment environment in order to increase domestic and foreign investment. Different development projects under Public-Private Partnership (PPP) model are being implemented. Up to February 2019 of the fiscal year, in total 1022 investment projects worth Taka 90,854 crore were made. In the nine months of the year 2018 Foreign Direct Investment (FDI) stood at $ 2,937.12 million. Average inflation during the first nine (9) months of the year stood at 5.44 percent, the moderating effect was the result of decline in food related inflation (from 6.18 percent in July, 2018 to 5.72 percent in March, 2019). Non-food inflation increased by 0.8 percentage point. These were in line with the monetary policy stances for the year 2018-19 which was designed towards attaining price and macro-financial stability along with sustainable growth. Bangladesh's export earnings grew by 12.57 percent and reached $ 30,903 million in the nine months up to March 2019 of the year. Major contributor to export earnings were Ready-made garments and Knitwear products. Country's import totaled $ 40,895 million which was nearly 6 percent higher. Overall trade deicit during the period up to February, 2019 was $10.695 million showing slight improvement compared to last year. At the end of April 2019, foreign exchange reserves stood at $ 32.12 billion. Currency depreciation up to February 2019 was 2.83 per cent and the inter-bank weighted average US dollar rate was Taka 83.85 per Dollar. Country achieved self-sufficiency in food production towards which agriculture sector was given the highest priority in the 7th five-year plan and SDG roadmap. Total food grains production is estimated to reach 415.74 lakh metric ton (MT) in 2018-19. Fish production during the year is going to reach 43.81 lakh MT. Contribution in GDP from the industry sector is estimated to reach 35.14 percent in the year 2018-19. In order to accelerate the pace of industrialization the government is working in line with the National Industrial Policy 2016. The EPZS and Special Economic Zones shall play a special role in the development of the industrial sector. During the year total installed capacity for electricity generation reached 18,079 MW which is 21,169 MW including captive and renewable energy. At present 93 percent population are under electricity coverage. Up to February 2019, highest power generation was 11,623 MW. Total system loss in transmission and distribution has been reduced to 10.90 percent during the period. Further, 28 29 29

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