Economy of Bangladesh

The economy of Bangladesh is moved forward rapidly in the last 10 years . According to the World Economic Forum Bangladesh’s economy is growing faster than neighboring India, Nepal, Sri Lanka, Pakistan & Maldives . The per capita income of the people of Bangladesh has increased due to the declining population growth rate . Since 2014, the country’s population has been growing at a rate of one percent per year , Bangladesh currently has GDP per capita $2,068 , in terms of purchasing power parity $5,453 .

According to a report by the World Bank, Bangladesh is one of the nine countries in the world that have achieved a GDP growth rate of more than 6 percent in 2019 . Once the Padma Bridge and mega projects are implemented, it is expected to boost the GDP of Bangladesh by as much as 1.2 percent. After independence in 1971 Foreign currency  it was almost zero. Now Foreign currency reserves have gone from nominal to 30-31.The total number of Mobile Phone subscribers in Bangladesh has reached 166.114 Million at the end of February, 2020 .

Bangladesh’s economy is 39th in the world and 29th in terms of purchasing power parity and   2nd in South Asia. The economy of Bangladesh is moving forward by leaps and bounds . Its the  eighth-most populated country in the world with almost 2.2% of the world’s population . The GDP of Bangladesh is $317.465 billion in 2019 . The garment industry , which contributes the most to the economic development of Bangladesh , is playing an important role in the country’s development. 7-8% of the total growth comes from the garment sector. The garment sector accounts for 16% of Bangladesh’s total GDP, Agriculture and forestry account for more than 14 per cent .

75 percent of the country’s exports come from the readymade garments sector. The size of this sector stands at 30 billion dollars.according to a report released by the Center for Economics and Business Research (CEBR) Bangladesh’s economy is set to become the world’s 30th largest by 2024, surpassing Malaysia, Hong Kong and Singapore .

According to the Bangladesh Economic Survey 2019, the total workforce of Bangladesh engaged in agriculture is 40.6% . 48.61 percent of households in Bangladesh are dependent on agriculture .According to the data of the Ministry of Agriculture till January 2020, Bangladesh is the 3rd, 4th and 8th in the world in vegetable, paddy and potato production respectively. It also ranks 4th in fish, 7th in mango, 8th in guava and 10th in food grain production in the world .

GDP$317.465 billion (2019
GDP (PPP)$860.916 billion
GDP by Sector(Percentage of GDP)
Agriculture13.32%
Industry31.15%
Service55.53%
GDP  Growth8.0% (2018) 7.9% (2019)
2.0% (2020e) 9.5% (2021e
Unemployment rate4.18% (2016)
Inflation5.564%
GDP per capita$2,068 (nominal, 2020 est.)
Exports$40.53 billion (July 2018- June 2019)
Imports $55.44 billion (July 2018- June 2019)
Mobile Phone subscribers166.114 million
Government borrowings33.1% of GDP (2017 est.)
 
Foreign reserves

$32 billion (July 2019
Economy of Bangladesh

Bangladesh has achieved GDP growth at an average rate of 7.3 percent over the past decade and is currently the 7th fastest growing economy in the world. In 2019, Bangladesh was the 42nd largest exporter in the world in terms of export earnings. In 2016, Bangladesh’s share in the global garment market was 6 percent and it was the second largest country in the world in terms of garment exports. In 2019, the contribution of goods and services export sector to the GDP of Bangladesh was 14.6% . 

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Sectoral Shares of Gross Domestic Product (GDP) of Bangladesh in Percentage

GDP Sector 2015-162016-172017-182018-19
A)Agriculture Sector of Bangladesh14.7714.1713.8213.32
AGRICULTURE AND FORESTRY11.5510.9810.6810.25
Crops & horticulture8.157.697.487.12
Animal Farmings2.011.931.861.79
Forest and related services1.391.371.341.35
FISHING3.223.193.143.07
B) Industry Sector28.7729.3230.1731.15
MINING AND QUARRYING1.731.831.831.82
Natural gas and crude petroleum0.650.640.620.58
Other mining & coal1.081.181.21.24
MANUFACTURING17.9118.2818.9919.89
Large & medium scale14.5814.9315.6316.37
Small scale3.343.353.363.52
ELECTRICITY, GAS AND WATER SUPPLY1.451.41.381.33
Electricity1.121.091.071.04
Gas0.260.240.240.22
Water0.070.070.070.07
CONSTRUCTION7.677.817.988.12
C. Service Sector of Bangladesh56.4656.55655.53
WHOLESALE AND RETAIL TRADE; REPAIR OF
MOTOR VEHICLES, MOTORCYCLES AND PERSONAL
AND HOUSEHOLD GOODS
13.0113.0513.1513.34
HOTEL AND RESTAURANTS1.041.031.041.04
TRANSPORT, STORAGE & COMMUNICATION10.27109.619.34
Land Transport7.767.647.387.22
Water transport0.620.590.550.51
Air transport0.080.070.070.07
Support transport services, storage0.490.470.460.44
Post and Tele communications1.321.241.161.1
FINANCIAL INTERMEDIATIONS3.863.913.933.89
Monetary intermediation (Banks)3.273.343.373.35
Insurance0.380.360.340.34
Other financial auxilliaries0.210.210.220.21
REAL ESTATE, RENTING AND BUSINESS ACTIVITIES7.517.737.827.87
PUBLIC ADMINISTRATION AND DEFENCE4.054.194.244.09
EDUCATION2.823.043.033.02
HEALTH AND SOCIAL WORKS2.112.082.072.15
COMMUNITY, SOCIAL AND PERSONAL SERVICES11.7911.4611.1110.78
Sectoral Shares of Gross Domestic Product (GDP) of Bangladesh

Development Expenditure of the Government by Sector

In million Tk.) Source : Compiled by National Accounting Wing, BBS

Sectors2009-102010-112011-122012-132013-142014-152015-162016-17
Agriculture163892093419800269622802034351552066412
Industry4428351844711713717810218341755821124
Flood Control and Water Resources1076811553128001593416560203022450029476
Rural Institution3626744734427366771470373862753899546916
Power and
Natural Resources333526902867548104978109100133752153859185111
Transport3526538471526428208185304104579177482213532
Communication3808261874546851712087281274115328
Education and Training41548487925213065345689508453094460113647
Health2711028652302703508836466447064762557298
Population Control and Family Planning and Housing387434320450930584406073474457155635187248
Others *1149217046771919823195632398686845104488
Total2591703285503485005003535200006375008649001040580

Development Expenditure of the Bangladesh Government by Sector

Notes : * Others include social welfare, labour training , Science and technology, Research and public administration

Bangladesh’s Commodity wise export shipments

In million US

Bangladesh’s Commodity wise export shipments 2018-19
July-Jan
2019-20P
July-Dec
2019-20P
July-Jan
  A. Frozen food361.09290.50337.33
    1. Fish40.8042.9752.29
    2. Shrimps257.41217.20247.71
    3. Others62.8830.3337.33
  B. Agricultural products658.43612.52681.66
    1. Raw jute78.8288.62102.05
    2. Vegetables64.78128.79132.83
    3. Tobacco49.6855.8360.55
    4. Cut flower3.980.020.02
    5. Fruits0.280.480.48
    6. Others460.89338.78385.73
  C. Manufactured products23160.0718399.1421900.48
    1. Petrolium bi-products177.2812.7815.14
    2. Chemical products124.78109.78126.25
    3. Plastic products67.0656.8666.42
    4. Leather & Leather Products (Other than Leather Footwear)242.12191.50225.76
    5. Cotton & cotton products86.4280.6893.25
    6. Jute goods419.84423.11500.44
    7. Specialised textiles84.0365.7875.65
    8. Knitwear10140.588205.809620.02
    9. Woven garments10076.907818.229443.22
    10. Home textile490.20370.10442.67
    11. Footwear534.62441.44521.92
    12. Engineering products199.36168.04194.82
    13. Ships, boats & floating structures0.170.1711.25
    14. Others516.71454.88563.67
  Total (A+B+C)24179.5919302.1622919.47
    Of which exports from EPZ3507.482924.413445.97
Commodity wise export shipments (Monthly Data)

Foreign Direct Investment (FDI) in Bangladesh

FDI stock classified by Major Countries and Major SectorsGas & PetroleumTextile and WearingPowerBankingFoodTeleco
m
TradingLeather CementAgriculture Computer Software
and IT
Chemicals and
Pharmaceuticals
NBFI (Including
Financial
Intermediaries)
InsuranceConstructionOther sectorsTotal FDI Stock
United States of America (USA)2769.752.95171.65189.943.076.5760.340.051.4210.950.3731.39197.722.3841.523540.02
United Kingdom (UK)399.911123.79163.14288.240.390.820.3573.150.37117.2919.570.4584.512271.98
Netherlands7.87112.369.15189.59727.331.3155.7547.97115.240.070.0712.79105.751385.25
Singapore43.32158.057.55337.8857.07-33.92109.880.0140.58.689.8794.2413.22345.591191.94
South Korea810.9189.70.130.1436.9109.27-0.131.2652.091100.27
Hong Kong: SAR of China512.9577.387.260.470.229.4648.4442.811.220.5400.660.01151.79873.19
China People’s Republic (P.R)197.46369.680.71036.4935.441.260.672.5520.65200.22865.13
Australia842.470.150.030.540.030.352.83846.4
Malaysia0.0116.851.99-0.06514.120.321.48228.741.663.9223.7220.86813.61
India88.87127.6461.9817.49153.9323.081.217.61-1.1227.596.313.88100.25618.72
Japan15.2433.781.4424.333.347.212.7610.2662.310.115.649.7533.4191.44450.96
Taiwan: Province of China118.923.4312.96135.940.253.9577.74353.19
Sri Lanka61.28167.7161.412.312.72-0.90.790.489.80.3928.09334.08
British Virgin Islands252.643.293.070.020.181.077.165.97333.34
Thailand0.8812.350.128.68158.070.530.1240.0131.6272.34
United Arab Emirates (UAE)1.675.9435.6241.972.26-0.121.3623.039.881.4711.5429.8277.55262.01
Saudi Arabia0.01199.820.0258.680.07258.6
Mauritius128.9163.855.452.290.260.022.1335.77238.68
Pakistan0.02-7.76191.970.130.03-0.0830.1214.41
Norway29.03140.123.480.340.289.92183.17
Other Countries71.04304.9750.294245.4725.8626.0116.7719.611.793.7373.37.294.71210.67903.51
Total FDI Stock3751.353250.022282.741558.441163.58861.13437.97407.22292.02284.86269.69246.42244.31204.03192.691864.3317310.8

FDI stock classified by Major Countries and Major Sectors as on End of Sep, 2019
-Foreign Investment & External Debt (FIED) Management Cell, Statistics Department, Bangladesh Bank

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