An IMF team has recently concluded a two-week-long visit to Bangladesh for reviewing the country’s economy. The visit was for the annual ‘Artcile IV’ consultation process. This consultation process involves IMF economists visiting the member country to gather information and hold discussions with bureaucrats, private investors, and other stakeholders including politicians, labor representatives, civil society organizations, and academics. The economists then submit a report to the Fund’s Executive Board. The Board reviews the report and sends it to the country’s government. At this point, a press release is issued. If the government agrees to it, the report itself is published.
As far as I can tell, full reports for Bangladesh were released in 1998, 1999, 2002, 2003, 2005 and 2007. I’m not sure if a full report is forthcoming this year. Here is the official press release. Highlights:
- Macroeconomic performance was remarkably resilient in a year of multiple natural disasters and elevated international food and fuel prices;
- The main priority is to keep control of inflationary pressures stemming from global prices and domestic demand.
- [D]espite the sizeable allocations made in the budget, recent movements in international commodity markets suggest that additional spending for fuel and fertilizer subsidies will likely be required.
The second point has received considerable attention in the media, and is the focus of this post.
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