Accessibility links

Inflation, Unemployment and Growth Trajectory

Inflation is on a rising trend and unemployment rate is also increasing in recent years which imply that the strategies and policies of the government to achieve 8 percent GDP growth rate by FY 2014-15 need re-working to address these problems for bringing the economy on track to achieve the target.That is why, this paper focuses on these three important variables. These are analysed through impact of increased inflation and unemployment vis-a-vis the targeted GDP growth, inflation and unemployment in Bangladesh and the possible sources of high inflation in recent months. This issue also highlights the trade situation of the country. Due to negative effect of inflation in Bangladesh, gap between growth rate and the actual growth rate is increasing. The gap between the targeted GDP growth rate and the achieved GDP growth in the last twenty years show that increase in average inflation may be one of the major reasons behind this gap.