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ECONOMY OF BANGLADESH
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Remittance 8
Life Expectancy 9
Imports ( % of GDP ) 11
Exports ( % of GDP ) 12
Global Integration
Infrastructure Development 15
Commendable Acheivements 17
INTRODUCTION
Bangladesh is one of the fastest growing economies in the world right now.
By funneling enough resources and support, Bangladesh can become major
role player for global economy in the future. From the times of Ibn Batuta
when he described the region having immense fertility resembling a water
soaked garden, to the times of Goldman Sachs who termed Bangladesh's
economy as 'The Miracle of East' , the potential for Bangladesh's economy in
undeniable.
GDP ( Gross Domestic Product ) is the total value of all final goods & services
produced in an economy for a given period of time. GDP is one of the most if
not the most important variables of an economy. GDP is a potential
equipment to fight against poverty. Higher GDP growth rate indicates higher
visible reduction in poverty where negative growth rate may increase
poverty.
From the table, we can say that GDP growth rate is stable over a period of
time which is very appreciable. The Bangladesh Economy didn't experience
acceleration during the 2000s in comparison to the 1990s . But in last 10
years, the growth rate has increased quite a bit. Specially in 2016, our
growth rate finally crossed 7%. Therefore, we can say that GDP growth rate
of Bangladesh has been in a rising trend.
PER CAPITA GDP
Per capita means per person. Per capita GDP stands for average income per
person in a country. The per capita GDP is especially useful when comparing
one country with another, because it shows the relative performance of the
countries. GDP per capita is a measure of the total output of a country that
takes the GDP & divides it by the number of people in the country.
(Investopedia )
Population (Million )
180
161 163
160 149
140
120
120 105
100
80.5
80 67 Population (Million )
60 50
38
40
20
0
1950 1960 1970 1980 1990 2000 2010 2015 2016
Analyzing the data found from the source, we can definitely acknowledge
that like per capita GDP. per capita GNI is increasing at a wonder rate. We
can see that, in past 10 years, the Per Capita GNI has got almost doubled
from $843 to $1610. If this growth continues, economy of Bangladesh will
boost its way to become a strong one. This macroeconomic variable is surely
giving a clear indication that economy of Bangladesh is in increasing trend
for sure.
INFLATION RATE
Inflation rate is one of the key macroeconomic variables that helps to gain
proper knowledge about an economy. Central banks attempt to limit
inflation and avoid deflation in order to keep the economy running
smoothly. "Inflation is the rate at which the general level of prices for
goods & services is rising and, consequently, the purchasing power of
currency is falling. " - Investopedia
Inflation Rate
12
10.32 10.33
10 9.07 8.94 8.78
8.27 8.15
8 7.63
7.03 6.77
6.34
6 5.19 5.43
Inflation Rate
4 3.37 3.53
2.42 2.39
1.93
2
0
199519961997199819992000200120022003200420052006200720082009201020112012
Figure shows that, inflation rate have fluctuated quite a bit in few decades.
From 1995 to 1996, inflation rate decreased significantly. From 2000-2003,
inflation rate was quite low in compared to the inflation rates of other years.
In 2001, annual inflation rate came down to its lowest point of below
2%(1.93%), mainly due to lower prices of food items.But it has been on an
upward path since 2007. It again touches two digits in 2011 due to the
results of rising international prices of fertilizers,fuel and foods,higher
business cost due to corruption and malgovernance.
UNEMPLOYMENT RATE
Unemployment Rate
6.00%
5.10% 5.00%
5.00% 4.50% 4.26% 4.24%
4.03%
Unemployment Rate
0.00%
1991 1997 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
From the above time series data, we can easily analyze the unemployment
rate of Bangladesh for the past 2 decades. In 1991, the unemployment rate
was quite low ( 2.2% ). But it creased to nearly 5% within 6 years. But a
significant scenario it seen here. The unemployment rate is stable around
4% for the last 8 years, which is a good indicator for an economy.
Unemployment rate can be moved down by opening new businesses.
Economic governance should play a vital part in this regard.
REMITTANCE
A transfer of funds or a payment made by an entity from any foreign nation
to his/her own nation is called remittance. It is one of the largest financial
inflows to developing countries. Money sent by migrants competes with
global aid . As a huge amount of citizens of our country work abroad, it's
obvious that the remittance we get from the migrants are one of the
blessings for our economy.
Remittance ( in Million $ )
2015 15366.72
2010 10836.03
2005 4630.06
1994 1150.88
1985 502.47
1976 18.76
From the horizontal bar diagram showing the yearly remittance gives us a
clear knowledge about the flow of the remittance in Bangladesh. Without
any doubt, this is one of the greatest achievements of our economy as we
can see, the amount of remittance for last 40 years has changed
unbelievably from 18.76 Million USD to 15,366.72 Million USD. From 2005 to
2010, the amount of remittance have got doubled. The amount of
remittance is increasing tremendously which is a blessing for our economy.
LIFE EXPECTANCY
Life expectancy is also an interesting indicator that gives comprehensible
suggestion about the average living years which can give clear idea about
achieving basic needs of the mass population. As Bangladesh is a small
country with large population, it's quite impossible for the government to
ensure every person's basic needs as the per capita income is not that high
in terms of other countries. Here is the table from where we can compare
the yearly data of life expectancy of Bangladesh:
From the table, we can see a stable but very significant uptrend of life
expectancy of Bangladesh. In last 25 years, the life expectancy has increased
from 58.4 years to 72.2 years, almost 14 years , which is outstanding from
the prospective of our country.
USD EXCHANGE RATE
US dollar exchange rate is also an important indicator where we can
compare the value of one currency in terms of the most common currency -
USD. One country's currency in terms of another country's currency is called
exchange rate. USD exchange rate plays a vital role in a country's level of
trade, which is critical to every free market economy in the world.
10
0
1980 1985 1990 1995 2000 2005 2008 2015
From the figure, we can scrutinize that Bangladesh taka in terms of USD has
been increasing quite alarmingly every decade. In 1980s, 1 USD was
equivalent to only 16.1 taka wherease it's almost 85 taka today . this is really
unsual & alarming for our economy. This also indicate that our country's
performance in international trade in not up to the mark since
independence.
IMPORTS OF GOODS & SERVICES
From the table above, we can see that a significant percantage of GDP is
used for imports . Imports increased quite a bit in last three decades
approximately from 13% to maximum of 28% of the GDP. Although the rate
has been on the declining side from 2013 till now which is a good news for
us.
EXPORTS OF GOODS & SERVICES
From the table, we can understand that exports ( % of GDP) has increaing by
approximately 5% to 16.6 % within 3 decades. Although it's on a decling side
from 2012 which we need to solve quickly by creating incentives for the new
exporters.
RESTRICTION BEHIND THE ECONOMIC GROWTH
IN BANGLADESH
INFRASTRUCTURE DEVELOPMENT
Despite having many weaknesses, there are some positive features of the
economy of Bangladesh those can be regarded as commendable
achievements. A list of those are given below:
✓ Poverty reduction
✓ Stable macroeconomic condition
✓ Declining population growth
✓ Outstanding increase of remittance
✓ Lower initial expense to set a business
✓ Low inflation rate
✓ Low exposure rate due to low trade base
✓ Exports of readymade garments in abroad
✓ Stable unemployment rate
✓ Syncronized increase in life expectancy
THE END