POOR ECONOMY IN BANGLADESH

Bangladesh is one of the world's most densely populated countries with 150 million people, 49 percent of whom live below the national poverty line. In addition, child malnutrition rates of 48 percent are the second highest in the world, a condition that is tied to the low social status of women in Bangladeshi society.

Bangladesh historically has run a large trade deficit, financed largely through aid receipts and remittances from workers overseas.[3] Foreign reserves dropped markedly in 2001 but stabilized in the USD3 to USD4 billion range (or about 3 months' import cover).[3] In January 2007, reserves stood at $3.74 billion, and they increased to $5.8 billion by January 2008, in Nov 2009 it surpassed $10.0 billion according to the Bank of Bangladesh, the central bank.[3] In addition imports and aid-dependence of the country has systematically been reduced since the beginning of 1990s. The results have been satisfactory. Economic growth has improved steadily since 1991. Inflation has been substantially reduced and the external current account balance has also improved. As a result of more rapid growth in the services sector, overall real GDP growth was 5.5 per cent in 1996, 5.9% in 1997 and 5.6% is the preliminary estimate for 1998. Encouraged by the government's policies of deregulation and financial sector reform, both private and public sector investments and national savings have increased steadily. Investment was equivalent to 12.1 per cent of GDP in 1992, 12.7 per cent in 1993, 14.6 per cent in 1994 16 per cent in 1995, 16.5 per cent in 1996 and 16.75 per cent in 1997. The national savings rate was 9.6 per cent of GDP in 1992 and continued to grow through the years to 12.95 per cent in 1997.