Bangladesh Economy

The political situation in Bangladesh appeared stable for most of 2011, though street protests and hartals continued to disrupt daily life throughout the country. Demonstrations by retail investors took place outside the Dhaka Stock Exchange after the equity market debacle in the latter part of 2010. The shortage of power, water, gas and weak infrastructure continued to disrupt the business environment and discourage potential investors.

Still, in spite of global economic shocks and natural calamities, Bangladesh has reduced poverty levels and improved living standards significantly in recent years.

In 2011, Bangladesh's sovereign debt was reaffirmed as BB- for long-term international credit and B for short-term credit by Standard & Poor's. The country earned an overall Ba3 rating from Moody’s Investors Service. The two leading international agencies assigned credit ratings to Bangladesh's sovereign debt for the first time in April 2010.

Remittances from Bangladeshis working overseas - mainly in the Middle East - remained the major source of foreign exchange earnings, along with exports of garments and textiles. Shipbuilding and jute cultivation have also begun to exert a positive impact on foreign exchange earnings.