The volume captures key developments in the Bangladesh economy in FY2011-12 and anticipates early signals of FY2012-13. It includes three analytical chapters and one dialogue report as an annex. Chapter 1 puts forward an assessment of Bangladesh's macroeconomic performance in FY2011-12 and serves as a benchmark exercise for assessing the outlook for the upcoming fiscal year. The chapter also picks up two thematic issues which are critical to the macroeconomic management in the present juncture - a mid-term assessment of the Sixth Five Year Plan (SFYP), and a review of the performance of the manufacturing sector of Bangladesh. Chapter 2 analyses the possible impacts of various fiscal measures and budgetary allocations proposed in the National Budget for FY2012-13. Chapter 3 focuses on the state of governance in the banking sector of Bangladesh. The chapter discusses some of the challenges confronting the banking sector in Bangladesh, particularly focusing on the state-owned commercial banks, in light of the recently exposed Hall-Mark scam.