Economy of Bangladesh

Economy of Bangladesh
Motijheel C/A, the downtown of Dhaka
CurrencyBangladeshi taka (BDT, ৳)
1 July – 30 June
Trade organizations
SAFTA, SAARC, BIMSTEC, WTO, AIIB, IMF, Commonwealth of Nations, World Bank, ADB, Developing-8
Country group
Statistics
Population169,800,000 (2022)[3]
GDP
  • Increase $451 billion (nominal; 2024)[4]
  • Increase $1.69 trillion (PPP; 2024)[4]
GDP rank
GDP growth
  • Increase 5.82% (2023)[5]
  • Increase 5.42% (2024f)[5]
  • Increase 5.2% (2025f)[5]
GDP per capita
  • Increase $2,624 (nominal, 2024)[4]
  • Increase $9,898 (PPP, 2024)[4]
GDP per capita rank
GDP by sector
  • Agriculture: 12.91% [6]
  • Industry: 33.90% [7]
  • Services: 53.40% [8]
(FY2020)[9]
Negative increase 11.66% (July 2024)[10]
Population below poverty line
Negative increase 31.8 medium (2022)[12]
Decrease 24 out of 100 points (2023, 149th rank)
Labor force
  • 74,913,612 (2024) [15]
  • Female 32.4% [16]
  • Steady 56% employment rate (2023)[17]
Labor force by occupation
  • Agriculture: 40.6%
  • Industry: 20.4%
  • Services: 39.6%
  • (2017 est.)[18]
Unemployment
Main industries
External
Exports
Export goods
Cotton textiles and knitwear,[24][25] jute and jute goods,[24][25] fish and seafood,[25] leather and leather goods, home textiles, pharmaceuticals, processed food,[26] plastics, bicycles[25]
Main export partners
Imports
  • $70.1 billion (2024)[29]
Import goods
Liquified natural gas, crude oil and petroleum, machinery and equipment, chemicals, cotton, foodstuffs
Main import partners
FDI stock
  • Increase $22.08 billion (March 2022)[31]
  • Increase Abroad: $309.6 million (31 December 2017 est.)[32]
  • Decrease −$18.697 billion
  • Decrease -4.2% of GDP
  • (F.Y. 2021-22)[33][34]
  • Negative increase $110 billion
  • (F.Y. 2024)[35]
Public finances
Negative increase 40.7% of GDP (November 2021)[36]
−3.2% of GDP (2017 est.)[32]
RevenuesIncrease ৳433000 crore (US$36 billion) (2022-2023)[37]
ExpensesIncrease ৳678064 crore (US$57 billion) (2022-2023)[37]
  • Increase $24.55 billion (Gross)
  • Decrease $19.84 billion (BPM6)
  • (October 2024)[41]
All values, unless otherwise stated, are in US dollars.


The economy of Bangladesh is a major developing mixed economy.[42] As the second-largest economy in South Asia,[43][44] Bangladesh's economy is the 35th largest in the world in nominal terms, and 25th largest by purchasing power parity. Bangladesh is seen by various financial institutions as one of the Next Eleven. It has been transitioning from being a frontier market into an emerging market. Bangladesh is a member of the South Asian Free Trade Area and the World Trade Organization. In fiscal year 2021–2022, Bangladesh registered a GDP growth rate of 7.2% after the global pandemic.[45] Bangladesh is one of the fastest growing economies in the world.

Industrialisation in Bangladesh received a strong impetus after the partition of India due to labour reforms and new industries.[46] Between 1947 and 1971, East Bengal generated between 70% and 50% of Pakistan's exports.[47][48] Modern Bangladesh embarked on economic reforms in the late 1970s which promoted free markets and foreign direct investment. By the 1990s, the country had a booming ready-made garments industry. As of 16 March 2024, Bangladesh has the highest number of green garment factories in the world with Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council (USGBC), where 80 are platinum-rated, 119 are gold-rated, 10 are silver, and four are without any rating.[49] As of 6 March 2024, Bangladesh is home to 54 of the top 100 LEED Green Garment Factories globally, including 9 out of the top 10, and 18 out of the top 20.[50] As of 27 April 2024, Bangladesh has a growing pharmaceutical industry with 12 percent average annual growth rate. Bangladesh is the only nation among the 48 least-developed countries that is almost self-sufficient when it comes to medicine production as local companies meet 98 percent of the domestic demand for pharmaceuticals.[51] Remittances from the large Bangladeshi diaspora became a vital source of foreign exchange reserves.[52] Agriculture in Bangladesh is supported by government subsidies and ensures self-sufficiency in food production.[53][54] Bangladesh has pursued export-oriented industrialisation.[55][56]

Bangladesh experienced robust growth after the pandemic with macroeconomic stability, improvements in infrastructure, a growing digital economy, and growing trade flows.[57] Tax collection remains very low, with tax revenues accounting for only 7.7% of GDP.[58] Bangladesh's banking sector has a large amount of non-performing loans or loan defaults, which have caused a lot of concern.[58][59] The private sector makes up 80% of GDP.[60][61] The Dhaka Stock Exchange and Chittagong Stock Exchange are the two stock markets of the country.[62] Most Bangladeshi businesses are privately owned small and medium-sized enterprises (SME) which make up 90% of all businesses.[63]

  1. ^ "World Economic Outlook Database, April 2019". International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". World Bank. Retrieved 29 September 2019.
  3. ^ "Population & Housing Census 2022: Post Enumeration Check (PEC) Adjusted Population" (PDF). Bangladesh Bureau of Statistics (BBS). April 2023.
  4. ^ a b c d "World Economic Outlook Database, April 2024". International Monetary Fund. Retrieved 16 April 2024.
  5. ^ a b c WORLD ECONOMIC OUTLOOK Steady but Slow: Resilience amid Divergence. International Monetary Fund (Report). p. 142. Retrieved 16 April 2024.
  6. ^ "Agriculture, forestry, fishing, value added (% of GDP)". The World Bank. World Bank. 28 April 2022. Retrieved 28 April 2022.
  7. ^ "Agriculture, forestry, fishing, value added (% of GDP)". The World Bank. World Bank. 28 April 2022. Retrieved 28 April 2022.
  8. ^ "Agriculture, forestry, fishing, value added (% of GDP)". The World Bank. World Bank. 28 April 2022. Retrieved 28 April 2022.
  9. ^ Gross Domestic Product (GDP) of Bangladesh (Final) 2019-20 (PDF) (Report) (Final ed.). Dhaka: Bangladesh Bureau of Statistics (BBS). 18 September 2018. p. 2. Retrieved 28 April 2022.
  10. ^ "Inflation climbs to 12-year high of 11.66% in July". The Business Standard. Retrieved 12 August 2024.
  11. ^ a b "KEY FINDINGS HIES 2022" (PDF) (Press release). Bangladesh Bureau of Statistics. pp. 15, 21. Archived (PDF) from the original on 30 May 2023. Retrieved 13 April 2023.
  12. ^ "Gini index - Bangladesh". Worldbank. Retrieved 10 March 2024.
  13. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 8 September 2022.
  14. ^ "Inequality-adjusted HDI (IHDI)". UNDP. Retrieved 8 September 2022.
  15. ^ "Labor force, total - Bangladesh". World Bank. Retrieved 27 September 2024.
  16. ^ "Labor force, female (% of total labor force) - Bangladesh". World Bank. Retrieved 27 September 2023.
  17. ^ "Employment to population ratio, 15+, total (%) (modeled ILO estimate)". World Bank. Retrieved 27 September 2024.
  18. ^ Report on Labour Force Survey (LFS) 2016-17 (PDF). BBS. January 2018. p. 173. ISBN 978-984-519-110-4. Retrieved 26 July 2018.
  19. ^ "Unemployment, total (% of total labor force) (modeled ILO estimate) - Bangladesh by World Bank 2021".
  20. ^ Hossain, Saddam. "Bangladesh earns a record $55.55bn from exports in FY23". Dhaka Tribune. Retrieved 3 July 2023.
  21. ^ "Exports grow 6.67% in FY23 – solely riding on RMG". The Business Standard. 3 July 2023. Retrieved 3 July 2023.
  22. ^ "Govt sets sights high on $72b earnings". The Financial Express. Retrieved 13 July 2023.
  23. ^ "Bangladesh earns 27.54 bln USD from exports in first half of 2023-24 fiscal year". China.org.om. Retrieved 3 January 2024.
  24. ^ a b "Bangladesh (BGD) Exports, Imports, and Trade Partners | OEC".
  25. ^ a b c d Most Exported Products of Bangladesh
  26. ^ "Processed food exports cross $1bn". Dhaka Tribune. 19 November 2022.
  27. ^ "Bangladesh (BGD) Exports, Imports, and Trade Partners | OEC". OEC - The Observatory of Economic Complexity. Retrieved 18 March 2023.
  28. ^ "Report: Cumulative Region-wise Data". EPB. Retrieved 20 July 2022.
  29. ^ Abu Taleb, Sheikh (1 August 2022). "Bangladesh trade deficit hits widest at $33.24 billion in FY22". Bdnews24.com. Retrieved 2 August 2022.
  30. ^ "Trade Profiles: Bangladesh". WTO. Archived from the original on 10 February 2018. Retrieved 9 February 2018.
  31. ^ "Foreign Direct Investment (FDI) in Bangladesh". Bangladesh Bank. Retrieved 20 July 2022.
  32. ^ a b "Bangladesh". The World Factbook. Central Intelligence Agency. Retrieved 10 January 2019.
  33. ^ "Govt expects current account gap to go in 2 years". Dhaka Tribune. Retrieved 23 June 2023.
  34. ^ Paul, Ruma; Kumar, Manoj. "Bangladesh's 2021/2022 current account deficit widens as import surges". Reuters. Retrieved 22 August 2022.
  35. ^ "Bangladesh's foreign debt more than triples in 10 years". The Business Standard. 7 December 2022. Retrieved 7 December 2022.
  36. ^ "There's still space for raising public debt". The Daily Star. 2 December 2021. Retrieved 2 December 2021.
  37. ^ a b "FY2022-23 budget at a glance". The Business Standard. 9 June 2022. Retrieved 3 July 2022.
  38. ^ "Bangladesh Long-Term Ratings Lowered To 'B+' On Elevated External Vulnerabilities; Outlook Stable". S&P Global Ratings. Retrieved 30 July 2024.
  39. ^ "Moody's downgrades Bangladesh's ratings to B2; changes outlook to negative". The Business Standard. Retrieved 18 November 2024.
  40. ^ "Fitch Downgrades Bangladesh to 'B+'; Outlook Stable". Retrieved 27 May 2024.
  41. ^ "Foreign Exchange Reserve (Monthly)". Bangladesh Bank.
  42. ^ —Riaz, Ali; Rahman, Mohammad Sajjadur (2016). Routledge Handbook of Contemporary Bangladesh. Routledge. p. 165. ISBN 978-1-317-30876-8.
    —Thorp, John P. (1986). "Bangladesh, Bangladesh!—A Review Article". The Journal of Asian Studies. 45 (4). Cambridge University Press: 789–796. doi:10.2307/2056087. JSTOR 2056087. S2CID 159085593.
    —Siddiqi, Dina M. "Miracle Worker or Womanmachine? Tracking (Trans)National Realities in Bangladeshi Factories." Economic and Political Weekly, vol. 35, no. 21/22, Economic and Political Weekly, 2000, pp. L11–17, JSTOR 4409325.
    —Paksha Paul, B. (2010), "Does corruption foster growth in Bangladesh?", International Journal of Development Issues, Vol. 9 No. 3, pp. 246-262. doi:10.1108/14468951011073325
    —Chowdhury, M.S. (2007), "Overcoming entrepreneurship development constraints: the case of Bangladesh", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 1 No. 3, pp. 240-251. doi:10.1108/17506200710779549
    —Bashar, Omar K. M. R., and Habibullah Khan. "Liberalisation and Growth in Bangladesh: An Empirical Investigation." The Bangladesh Development Studies, vol. 32, no. 1, Bangladesh Institute of Development Studies, 2009, pp. 61–76, JSTOR 40795710.
    —Ahamed, Md Mostak. "Market Structure and Performance of Bangladesh Banking Industry: A Panel Data Analysis." The Bangladesh Development Studies, vol. 35, no. 3, Bangladesh Institute of Development Studies, 2012, pp. 1–18, JSTOR 41968823.
  43. ^ "Bangladesh ranked 41st largest economy in 2019 all over the world". The Daily Star. 8 January 2019. Retrieved 2 October 2022.
  44. ^ Sayeed Iftekhar Ahmed (18 March 2022). "Where do Bangladesh and Pakistan stand after 50 years of separation?". Scroll.in. Retrieved 2 October 2022.
  45. ^ "Bangladesh Economy, Politics and GDP Growth Summary - The Economist Intelligence Unit". country.eiu.com.
  46. ^ The Bangladesh Economy Navigating the Turning Point
  47. ^ "Bangladesh - The "Revolution" of Ayub Khan, 1958-66". countrystudies.us.
  48. ^ "Major Commodities of Pakistan: A Review". Economic Digest. 3 (3): 44–52. 1960. JSTOR 41243217.
  49. ^ "2 more factories get LEED Gold certification". The Business Standard. 16 March 2024. Retrieved 28 March 2024.
  50. ^ "LEED certification: 2 more factories in Bangladesh recognised as 'green'". The Business Standard. 6 March 2024. Retrieved 28 March 2024.
  51. ^ Chakma, Jagaran (27 April 2024). "Starting from nowhere, pharma sector becomes a lifesaver". The Daily Star. Retrieved 27 April 2024.
  52. ^ "Big drops in remittance, exports make reserves struggle harsher". The Business Standard. 2 October 2023. Retrieved 27 April 2024.
  53. ^ "Govt focuses on food security in new action plan amid global crisis". Prothom Alo. 15 July 2022.
  54. ^ Khatun, Fahmida (13 July 2020). "Ensuring food security for all". The Daily Star (Opinion).
  55. ^ Al Mamun, K. A.; Nath *, H. K. (15 May 2005). "Export-led growth in Bangladesh: a time series analysis". Applied Economics Letters. 12 (6): 361–364. doi:10.1080/13504850500068194. S2CID 218640035.
  56. ^ Khatun, Fahmida (26 March 2021). "50 Years of Bangladesh: Accelerating export-led industrialisation". The Daily Star.
  57. ^ "Booming Bangladesh – Deutsche Bank". flow.db.com.
  58. ^ a b "Bangladesh - Market Overview". 20 July 2022.
  59. ^ "Huge defaulted loans an acute risk for Bangladesh's banking sector: IMF". The Business Standard. 30 October 2022.
  60. ^ "Public sector needs to keep pace with private sector". The Business Standard. 20 January 2022.
  61. ^ Express, The Financial. "Next-gen growth hinges on timely policies for private sector". The Financial Express.
  62. ^ "Dhaka Stock Exchange". www.dsebd.org.
  63. ^ "ICAB". www.icab.org.bd.