Question: State the contemporary macroeconomic Situation of Bangladesh. Answer: The projected recovery in global growth bodes well for Bangladesh, particularly the US and Euro Zone, along with the continued softness in internationa commodity prices. Political stability and faster structural reforms are needed capitalize on these opportunities. Political turmoil in second half of FY15 is likel to slow down the economy. The growth is projected to be 5.6 percent in FY15 But, without the political turmoil, the growth could have been 6.6 percent. Wit stability, a strong domestic demand base, gradual improvements in the investme climate, and single digit inflation are expected to raise GDP growth to 6.3 percer in FY16 and 6.7 percent in FY17. The macroeconomic outlook is stable. The current account deficit is projected rise from 0.5% of GDP in FY15 to 0.7% in FY17 after dropping to 0.3% in FY16 due to a decline in the oil import bill. Fiscal gains from the oil price decline will b offset by a prospective wage hike and likely increased policy support to compensate businesses in FY16. Inflation is likely to be contained as the Bangladesh Bank is committed to maintain a restrained monetary policy stance. The macroeconomic developments in Bangladesh since the beginning of the 199 until middle of the decade, were characterized by a record-low rate of inflation, unprecedented build-up of external reserves and an improved resource position the government. These developments have been interpreted in part as evidence successful macroeconomic stabilisation, but also in part as symptoms of econom stagnation. The changes in the macroeconomic trends in the early 1990s came the wake of a transition to a democratic rule along with the launching of comprehensive programme of market-oriented liberalizing policy reforms. Aft that period there was a evident in a build-up of inflationary pressures, deterioration in the government's budgetary balances and a rapid draw-down foreign exchange reserves. (Mahmud: 1997) Since the beginning of the new decade after 1990s, the Bangladesh Economy was facing possibly the most sever exigency after the macroeconomic crisis of the late 1980s. The enormous achievements of the 1990s have fallen under threat because of the twin shoc. emanating from large fiscal deficit and deteriorating balance of payment positi