Bangladesh Economic Update: REMITTANCE

The remittance, a driver of growth of the economy of Bangladesh, has become a cause of concern, particularly against the backdrop of dwindling current account balance and volatility in the exchange rates, having implications over the macroeconomic stability and prospects of growth. The gap between actual flow of remittance and the government’s target articulated in the medium term macroeconomic framework (MTMF) is on the rise and might grow sharply in the upcoming years. In FY 2010-11 the actual receipt of remittance totals USD 11,650.30. If the current trend prevails, the gap might increase further in FY 2014-15 and under the business as usual scenario, the flow of remittance might stand at USD 15,309.996 million against the MTMF projection of USD 31,400 million. Under the business as usual scenario, the percent change might slide down to 7.09 but remittance as a percentage of GDP might increase to 11.12 in FY 2014-15.