CHAPTER 2 GDP, SAVINGS AND INVESTMENT

[Bangladesh has been able to achieve GDP growth at more than 6 percent on an average even during the period of global financial crisis. According to the final estimate of Bangladesh Bureau of Statistics, GDP growth stood at 6.71 percent in FY 2010-11 which was higher than 6.07 percent growth in FY 2010-11. The economy recorded 6.31 percent GDP growth rate in the current fiscal year 2011-12 as per the provisional estimate. In attaining GDP growth, three main sectors of the economy like agriculture, industry and service sector made major contributions. Because of high base effect induced by more than 5 percent growth in agriculture sector during the last two years, the growth of agriculture sector reduced slightly to 2.53 percent in the current fiscal year, which was still satisfactory. In FY 2011-12 at constant prices, share of agriculture, industry and service sectors stood at 19.29 percent, 31.26 percent and 49.45 percent respectively. According to the provisional estimate, on expenditure side, in FY 2011-12 consumption expenditure decreased by 0.09 percentage point of GDP to 80.63 percent of GDP compared to 80.71 percent in FY 2010-11. On the contrary, domestic savings accelerated to 19.37 percent of GDP in this fiscal year from 19.29 percent of GDP in FY 2010-11. However, because of positive growth in remittance inflows, national savings increased to 29.40 percent of GDP in FY 2011-12 from 28.78 percent of GDP a year earlier. Furthermore, investment-GDP ratio stood at 25.45 percent in the fiscal year which was 25.15 percent in FY 2010-11.]

Economic Growth Bangladesh achieved 6.7 percent growth in FY 2010-11even after the global financial crisis. This growth performance was supported by strong rebound in exports and the expansion of manufacturing sector. However, the estimated growth rate slightly decelerated to 6.31 percent in FY 2011-12. According to the provisional estimate of BBS, the economy has posted a growth rate of 6.63 percent in FY 2010-11. According to the projections set out in the Medium Term Macroeconomic Framework (MTMF) the GDP growth will stand at 7.2 percent in FY 2012-13, which is projected to reach 8.3 percent in FY 2015-16. Gross Domestic Product (GDP) at Current Prices The provisional value of GDP at current market prices stands at Tk. 9,14,784 crore in FY 201112, which was 14.82 percent higher than that of the previous year. At current prices, the estimated per capita GDP for FY 2011-12 is TK. 60,350 which has increased by 13.35 percent from the per capita GDP of Tk. 53,238 in FY 2010-11. On the other hand, per capita national income stood at Tk. 66,283 which was Tk. 58,083 a year earlier. In US dollar, per capita GNI and GDP stood at US$ 848 and US$ 772 respectively during this year, compared to US$ 816 and 16

Transport. Renting & other Business Activities 12. Natural gas & crude petroleum b. Per Capita GDP and GNI at Current Market Prices Item 2005-06 2006-07 2007-08 GDP (In Crore Tk. Water transport c.97 53238 58083 748 816 2011-12* 914786 1004723 15. Air transport d. Mining and Quarrying a. Construction 7. Other mineral resources 4. Monetary intermediation(Bank) b. Water 6.06 14.1.2: Gross Domestic Product (GDP) at Current Market Prices Sector/Sub-sector 1. GNI. Land transport b. GDP.61 47536 51959 687 751 2010-11 796704 869217 14. Education 2005-06 62223 46118 9682 6423 16317 4643 2568 2075 68923 48974 19949 5392 4455 594 342 32797 56984 2853 43206 32841 3137 500 1260 5467 6684 4995 1430 260 32157 11036 9935 2006-07 70124 52468 10780 6876 17783 5322 2845 2476 81178 57688 23490 5590 4567 651 372 37543 66011 3289 48908 36853 3307 509 1420 6820 7744 5797 1640 307 34929 12743 11776 2007-08 80201 60578 12118 7505 19790 6152 3164 2988 93901 66759 27142 6070 4955 716 399 43854 78220 3889 56907 42857 3621 546 1569 8314 8955 6656 1930 368 38058 14427 13531 2008-09 89426 67247 14002 8177 21806 7091 3590 3501 106445 75610 30835 6542 5311 793 438 50125 88276 4460 64280 48365 3923 589 1758 9645 10245 7613 2201 431 41616 16360 15494 (In Crore Taka) 2009-10 20102011-12* 11 100588 113582 123877 75339 85238 92508 16219 18470 20494 9030 9874 10876 24223 26996 30999 8114 9063 10318 4039 4262 4631 4075 4800 5688 120108 135551 156590 84899 97121 112625 35209 38430 43965 7195 8211 9773 5840 6775 8230 876 908 955 479 529 588 55658 63982 75465 100295 115959 134860 5150 5998 7178 71880 85465 100053 54159 66088 78855 4214 4532 4986 649 722 812 1938 2070 2201 10920 12053 13198 12300 14484 16965 9063 10621 12430 2702 3231 3795 535 632 740 45683 50337 55546 18757 17908 22381 21308 25449 24809 17 . Small scale 5. GNI. Storage & Communication a.2 below: Table 2. Post & telecommunication 10. Wholesale and Retail Trade 8. Crops & horticulture b. Support transport services.16 60350 66283 772 848 The GDP at current market prices by sectors are shown in Table 2.42 42628 46504 620 676 2009-10 694324 758928 14.) 29955 33607 38330 Per Capita GNI (In Tk. Large & medium scale b. Other financial intermediation 11. Insurance c. Gas & Water Supply a. Manufacturing a. Forest and related services 2. Financial Intermediations a. Animal farming c. Table 2. Real Estate. Gas c. Agriculture and Forestry a. Electricity. Electricity b. per capita GDP and national income during the period from FY 2005-06 to FY 2011-12 are shown in Table 2.US$ 748 respectively in FY 2010-11.) 442935 507752 594212 Population (In Crore) 13. Fishing 3. storage e.24 Per Capita GDP (In Tk.) 415728 472477 545822 GNI (In Crore Tk.) 31915 36116 41728 Per Capita GDP (In US$) 447 487 559 Per Capita GNI (In US$) 476 523 608 Source: Bangladesh Bureau of Statistics (BBS) * Provisional 2008-09 614795 670696 14.1: GDP. Hotel and Restaurants 9.88 14. Public Administration and Defense 13.

(ii) manufacturing.05 2. Table 2.37 7.agriculture. The broad service sector includes the collective outputs of the.49 5.48 3.39 8. social and personal services.48 3. (iv) financial intermediations.63 7.90 5.58 6.96 3. (iii) electricity.55 6.42 8.45 2006-07 4.78 7.76 10.38 5.55 9.42 5.14 13. The growth rates of GDP by sectors at constant prices since FY 2005-06 have been shown in Table 2.78 9.91 5.98 7.93 4.25 5.94 5.84 6.52 8.84 7. Large & medium scale b. Crops & horticulture b.21 7.94 3.31 7.31 6.55 8.47 5.26 9.60 18 .67 7.04 7.91 9. Community.01 9. Fishery 3.72 5.95 10.82 7.16 4.18 14.18 3.39 3.21 7. industry and service.51 5. Small scale 5.13 2. (ii) hotels and restaurants. (i) wholesale and retail trade.26 7. Water 6.58 6.21 7.68 6.69 4.3: Sectoral Growth Rate of GDP at Constant Prices (Base Year: 1995-96) (In Percentage) Sector/Sub-sector 1.43 10. Animal farming c.01 8. Hotel and Restaurants 2005-06 5.80 6.26 9.82 8.67 4.00 5.69 5.94 9. Similarly.52 2007-08 2008-09 2009-10 2.82 8.37 7. Social and Personal Srvices Import Duty GDP at Current Market Price Growth Rate ( percent) Source: Bangladesh Bureau of Statistics (BBS) 2005-06 2006-07 2007-08 11819 50200 11733 545822 15.87 7.80 8.64 2009-10 15142 68466 22853 694324 12.44 3.03 6.69 2. (viii) health and social work and (ix) community.3 and graph 2. (v) real estate renting and business activities.08 7.77 6.15 8.10 5.02 6.74 9.08 7.82 Growth of GDP by Sectors In the estimation of production based GDP.72 6.65 0.07 8.12 10. Agriculture and Forestry a.33 8.99 6.41 9. Health and Social Work 15. Electricity.09 1.88 7. Wholesale and Retail Trade 8.65 * Provisional 201011 17582 77876 27931 796704 13. Mining and Quarrying a. gas and water supply and (iv) construction sector. Gas & Water Supply a.94 9022 10307 38283 43568 15274 15662 415728 472477 12. Natural gas & crude petroleum b.72 9.51 6.11 15.21 7.18 4. storage and communication.03 8.84 8.80 9.42 2011-12* 20337 91485 31078 914784 14. Electricity b.23 4. Forest and related services 2.25 1.68 6.Sector/Sub-sector 14.43 5.77 11.68 7.50 5. the broad industry sector comprises (i) mining and quarrying.1.33 0.77 6.23 5.90 4.52 2008-09 13391 58364 20871 614795 12.15 5. (i) agriculture and forestry and (ii) fisheries. Gas c.10 1.01 10.84 10. (vii) education.39 5.01 5.77 7.75 7.90 9. The broad agriculture sector consists of two sectors namely.28 7. Manufacturing a. Other mineral resources 4.45 10.38 4.10 6.45 9.24 4.56 2.51 7. (iii) transport.70 6. (vi) public administration and defence.61 2010-11 2011-12* 5. 15 sectors are considered where some sectors are further divided into different sub sectors.15 8. Construction 7. All the 15 sectors are grouped into three broad sectors viz.

34 8. Monetary 8.05 6.3 6.64 a.94 4. Social and 4.81 9.98 8.5 5. the growth of crops and horticulture sub-sector plunged from 5.07 8.25 2.8 6. Land transport 4.32 Graph 2.69 3.70 23.05 8.05 9.76 3. Of this growth performance.20 7. Water transport 1. Community.38 14.8 5.8 6.38 9.68 6.21 10.19 9.70 4.48 9.52 9.81 3.36 8.4 6.61 7. Real Estate.64 7.7 6.2 Agriculture Sector In FY 2011-12.62 4.79 7.5 6. Renting & 3.94 11.93 9. Post & telecommunication 26.56 9.01 c.16 8.1 6.24 9.04 11.13 8.70 6.50 10.46 1.75 3.19 5.15 storage e.01 6.64 9.69 4.47 5.01 7.61 3.09 9.53 percent which was 5.88 b. Other financial intermediation 11.69 Communication a. Support transport services.43 6.96 9. Insurance 10.64 16.05 8.69 6.95 1.17 5.6 6.21 6.76 6.Sector/Sub-sector 2005-06 2006-07 2007-08 2008-09 2009-10 9. Education 9.72 6.62 12.73 2.41 6.29 21. Public Admin and Defense 8.72 5.41 9.64 8.90 10.03 8.58 10.86 3.4 6.10 c.67 9.09 4.47 intermediation(Bank) 9.58 4.02 7.50 9. Health and Social Work 7.22 5.99 11.13 16.04 percent in FY 2010-11 to 1.13 1.6 6.78 1.18 4.9 7.03 8.95 10.21 7.55 8.76 6.89 other Business Activities 12.14 4. the provisional growth rate of broad agriculture sector stood at 2.06 6.54 2.58 4.08 5.35 13.74 6.13 percent in FY 2010-11. Storage & 7.26 3.72 percent this year.24 14.18 8.10 15.93 8. Financial Intermediations 8.07 Rate ( percent) Source: Bangladesh Bureau of Statistics (BBS) * Provisional 2010-11 2011-12* 5.38 9.05 10.96 7.01 8.01 9.20 8.1: Sectoral GDP Growth at Constant Prices 12 10 8 6 4 2 0 2006-07 2007-08 Agricultu 2008-09 Industry 2009-10 Service 2010-11 GDP 2011-12 4. 6.1 2.2 6.13 d.98 b. Transport. Air transport 5.63 6.89 8. 19 .71 4.54 5.4 5.2 6 5.11 12.72 Personal Services At Constant Price GDP Growth 6.7 1.45 9.15 8.45 6.47 11.80 8.35 4.

45 lakh metric tonnes compared to 360. export of Bangladesh remained in the positive territory.Besides. According to the provisional estimate of BBS. the Quantum Index of Industrial Production (QIP. Amon.67 lakh metric tonnes respectively. petroleum and food products registered a decreasing trend compared to the same period of the previous fiscal year. basic metallic products. agriculture and forestry sector grew by 1. growth in livestock sub-sector decelerated slightly. In this sub-sector.39 percent and 4. There has been significant growth in the production of Aus because of uninterrupted fertilizer supply.95 percent.8 percent in FY 2010-11. experienced sluggish growth due to sovereign credit crisis. The fisheries sector grew by 5. non-metallic products.05 percent). Industry Sector Within the broad industry sector. 187. wooden furniture.78 percent in FY 2011-12 which was 10.62 lakh metric tonnes where inland and marine catches were 26. Boro and wheat slightly increased to 23.36 lakh metric tonnes in FY 2011-12 from the previous year’s production of 15.52 lakh metric tonnes.42 percent respectively in FY 2011-12 which were 3. The Government has been continuing its effort to ensure supply of sufficient fertilizer and irrigation facilities to the farmers. 9. Livestock and forestry sub-sector grew by 3.48 and 3.32 percent). Base year: 1988-89=100). According to the estimate of the Directorate of Fisheries (DOF). Bangladesh’s main export destination.05 percent a year earlier. which by 9.95 lakh metric tonnes (2. According to provisional data.76 percent) and 9. natural gas production and crude petroleum grew by 2.90 percent respectively in the previous fiscal year. The index of production in this sub-sector.59 lakh metric tonnes (. especially jute. Due to the outbreak of Avian Flu during this fiscal year.25 percent in FY 2010-11.95 lakh metric tonnes and 5. the provisional growth of mining and quarrying sub-sector sector was recorded 6. irrigation facilities and favourable weather.72 percent in the current fiscal year. the total inland and marine catches in FY 2011-12 was 32.32 lakh metric tonnes (9. Although the eurozone. the growth rate of the production of large and medium scale manufacturing industries was 10.65 lakh metric tonnes of the previous year. cotton. this year production of Aus. which was 1.36 percent) respectively compared to what stood in the previous year while production maize decreased to 2. The growth rate of other mining sub-sectors was about 10 percent in both the fiscal years. 20 . In FY 2011-12. On the other hand. the estimated total production of cereals (rice. Because of production environment and high base of last year’s production.38 percent in FY 2011-12 compared to that of 5.95 lakh metric tonnes (0. the production index of paper and paper made products remained similar and chemical products.25 percent in FY 2011-12 which was 4.94 percent in FY201011.20 lakh metric tonnes. The growth rate of the forestry sub-sector showed consistent increase during this period. ready-made garments. fabricated metallic products increased in the first six months of FY 2011-12 compared to the index of the same period of FY 2010-11. wheat and maize) was 351.

26 percent.75 percent of the previous year to 5.61 percent and 7. Due to increasing investment in infrastructure.58 percent for this fiscal year which was 5.84 percent in FY 2010-11. The table shows that. slightly higher than the growth rate of the previous fiscal year. Sectoral Shares in GDP at Constant Prices (Base Year: 1995-96) Table 2.export earnings increased by 4. The land transport and water transport sub-sector registered higher growth this fiscal year compared to that of the previous fiscal year.01 and 8. it was expected that the growth rate in construction sector would increase to 8. Among the three sub-sectors of this sector. Growth in hotel and restaurant subsector was supposed to remain the same while that in transport. the growth rate of public administration and defense.64 percent in FY 2010-11. 8. whole sale and retail trade were estimated to grow by 5. education.72 percent growth over the growth of the corresponding period.88 percent in FY2011-12.90 21 .94 percent respectively in FY 2011-12. Service Sector The growth in almost all the sectors within the broad service sector except financial intermediation. the overall growth of this sector has increased.51 percent in the last year.51 percent this fiscal year which was 6. the output of the wholesale and retail trade was expected to slide from 7.05 percent which was 3.69 percent in FY2010-11.18 percent in FY 2011-12 from the growth of 5. the growth of these two sub-sectors was estimated at 10. On the other hand. In FY 2011-12. and health and social services were expected to grow at the rate of 6.24 percent and 10. gas and water sector was 14. In fact. In the previous year.4 represents the sectoral share of GDP at constant prices (Base Year: 1995-96). According to the provisional data. Moreover.11 percent in the current fiscal year. this sector registered 14.76 percent in FY 2011-12. financial intermediation showed the prospect of an estimated growth rate of 9. the share of the agriculture and forestry sector in GDP at constant prices was 14.07 percent.11 percent compared to those of previous year and in the first half of this year.76 percent which is slightly higher than 9.63 percent. Among the other services sectors.31 percent growth of the previous fiscal year. community.88 percent during FY2011-12 compared to 6. while in the previous year it stood at 6.61 percent respectively contributed significantly to GDP. air transport and post and telecommunication sub-sector with an estimated growth of 9.96 percent in FY 2010-11. storage and communication it was estimated at 6. social and personal service sector was estimated to grow by 4.45 percent growth of the previous year.52 percent which was 9. overall growth rate of manufacturing industry sector stood at 9. Production of small industries increased by 7. The growth rate in the real estate renting and business activities sector was provisionally estimated at 4. the growth of two sectors was estimated to be declined. During FY 2011-12. because of the accelerated growth in power sub-sector. The estimated growth rate of power.

09 9.72 1. Animal farming c.30 0.28 0.79 2. Contribution of manufacturing sector expanded to 19.72 0.19 0.21 0.18 1.11 0.71 0.18 6.26 1.82 0.81 15.46 0.73 1.38 0.26 1.55 12.46 17.08 9.65 2.76 1.39 percent in FY2011-12.37 0.43 1.31 2.74 0.29 percent in FY2010-11.39 0.76 1.71 5.64 16.19 0.19 0.43 percent in FY2010-11 to 4.37 0. The overall contribution of broad agriculture sector dipped to 19.00 11.4: Sectoral Share of GDP (percent) at Constant Prices (Base Year: 1995-96) Sector/Sub-sector 1.63 5.31 2.31 0.49 1.09 9. Wholesale and Retail Trade 8.09 7.07 6.11 0.71 10.87 4.74 10.13 14. Gas & Water Supply a.43 11.73 0.65 1.75 1.94 1.22 1.01 13.32 0. On the contrary.33 0.64 11. within the industry sector.12 0.40 2.47 17.31 0.10 14.01 percent of GDP in FY2011-12 compared to 18.58 1.49 4.44 0.13 0.86 1. Post & telecommunication 10.44 6.28 12.90 12.70 6.34 3.18 4.47 0.41 13.79 6.69 1.21 1.77 0.76 1.74 2.09 6.00 4.40 0.41 0. the share of broad industry sector reached to 31.36 0. The share of power.42 0.12 0.69 10.percent in the FY 2011-12 which was 15.08 7.55 19. Construction 7.53 18. Gas c.75 1. The contribution of all the three sub-sectors of agriculture and forestry sector decreased during this period.72 0.14 4.58 14. Fishing 3.68 5.92 2.69 0.59 1.15 14.33 3.09 9.12 0.26 percent in the current fiscal year.69 10.57 1.09 9.72 1. storage e.79 1. Water transport c.73 1. Real Estate.18 0.88 2.25 0.19 0.07 7.24 0. Electricity.85 0.51 0.20 0.29 0.08 1.19 0.09 14.59 1.89 0.16 0.26 0. Natural gas & crude petroleum b. Electricity b.18 15.08 1. Storage & Communi.86 1.76 0. Financial Intermediations a. Water 6.73 10.71 0.38 0.45 17.08 7. During FY 2011-12.26 0.45 0.58 percent in FY2010-11.77 12.75 0.66 4.90 12.94 12. Large & medium scale b. from 30.79 0.32 2.81 1. Hotel and Restaurants 9.50 1.67 0.91 15.01 1.36 0.14 14. Other mineral resources 4.31 0. Manufacturing a.02 1.51 17.42 percent of the previous fiscal year.40 1.08 12.32 10.18 0.85 22 . Crops & horticulture b.73 2.35 3.14 1.33 2.18 0. Transport.29 in FY 2011-12 which was 19. Renting & other Business Activities (In percentage) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* 16.33 0.34 0.58 2.07 7. Table 2.42 11.38 percent of FY 2010-11. Small scale 5.34 4. Insurance c.45 0.98 16.09 9.27 14. gas and water supply and construction sector also increased during this fiscal year compared to the share recorded a year earlier.26 0. Monetary intermediation(Bank) b.08 0.37 0.47 5.50 17. Forest and related services 2. Agriculture and Forestry a.34 3.65 6.70 10. a. Air transport d.60 1.50 0.65 1.07 7.09 9.72 6.38 0.12 5.12 0.95 1.60 1. Similarly the contribution of fisheries sub-sector marginally slid down from 4.12 14.26 percent.72 10.21 0.64 4.43 0. Other financial intermediation 11. Mining and Quarrying a. GDP growth at constant prices in mining and quarrying sub-sector remained similar to the previous year’s growth of 1.07 1. Land transport b.39 1.75 5. Support transport services.

31 2.00 100.20 29.78 2.49 2. storage and communication sub.70 percent a year earlier.98 7.24 6.00 2.03 21.03 49.64 2.78 2.29 2.00 100. over the three decades the share of the industry sector in GDP increased gradually and continued to increase in FY 2011-12.57 6.01 30.61 100.38 2.5: Trend of Structural Transformation of Broad Sectoral Shares in GDP and Growth Rate at Constant Prices (Base year: 1995-96) Share (in percent) Sector 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2009-10 2010-11 2011-12 Agriculture Industry Service Total Agriculture Industry Service GDP (At producer prices) 33. the service sector contributed at a similar pace over the period.75 2. Other than the two major broad sectors.84 19.45 48.53 9.26 percent of GDP) was the highest in FY 2011-12 which was slightly less than that of FY 2010-11.39 Source: Bangladesh Bureau of Statistics (BBS) * Provisional 23 .13 21.31 2.00 Average growth rate (in percent) 3.73 49.00 100.60 100.28 3.61percent of DP) sub-sector in FY 2011-12. followed by community. Health and Social Work 15.00 5.00 100.2. The next largest share came from real estate.45 7.15 29.00 In FY 2011-12.96 5.53 6.58 2.74 31.85 percent of GDP).29 29. social and personal services (6.49 6.23 3.71 2.07 17.59 19. the share of overall service sector in GDP is 49.22 6. The second largest share within the sector was the transport.45 100. The structural changes of the share of broad sectors in GDP are represented in the Table 2. Education 14.13 8.00 100.34 3.83 6.00 * Provisional 100.22 20. renting and business activities (6. which was 10.24 4.47 6.Sector/Sub-sector 12.25 7.93 49.00 3.31 49.78 100.92 2.20 6.00 100.06 6.31 5. the contribution of wholesale and retail trade sub-sector (14.87 26.27 2.74 4. Table 2.00 100.54 2.29 31.93 6.72 4.42 2.13 3. On the other hand. Public Administration and Defense 13.84 2.09 7.72 percent in FY 2011-12.47 6. 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* 2.01 6.91 2.71 2.45 percent which stands slightly lower than 49.62 100.04 24.47 5.26 49.sector comprising 10.71 6.23 25. From the table it would be seen that.60 percent in the previous year.68 25.38 49.77 49.14 4. Community.00 100.10 3.55 3.76 2.00 5.94 6.02 20.34 2.5 and graph 2.84 2.14 100.45 9.40 3.10 3.00 100.73 49. Social and Personal Services GDP Source: Bangladesh Bureau of Statistics.41 7.

29 and 30. In Table 2. On the other hand. Investment 24933 25729 27042 28898 34820 44934 57672 Public 155444 175104 Private 77546 89862 105090 120942 134691 -26070 -32723 -45914 -43803 -45895 -69390 -94464 4.2: Trend of share of three major sectors in the last three decades at Constant Prices 120 100 80 as % 60 40 20 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 0 Agriculture Industry Service Expenditure Based GDP The GDP based on expenditure is presented in Table 2.6 and the saving and investment situation is presented in Table 2.6: Expenditure Based Gross Domestic Product at Current Prices (In crore Tk. The provisional estimates of BBS for both category of savings stand at 19. Table: 2.78 percent of GDP. growth in domestic savings and remittance is also in the positive territory. the national savings increased this fiscal year.) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12* Item 434014 491908 567104 6411311 724282 843310 970407 1.08 percent compared to that of the previous year.21 percent and 28. It indicates that domestic savings and national savings of current fiscal year increased compared to that of the previous year.21 percent of GDP respectively in FY 2005-06. domestic savings and national savings were 20.Graph 2. consumption accounted for 80. Due to the slight dip in consumption spending.37 percent and 29. Net Export 407962 459185 521190 597328 678386 774010 875943 5.31 percent and 30.7. domestic savings and national savings stood at 19. In FY 2010-11. Consumption 23032 26106 28831 32354 37272 46087 51812 Public 308520 350212 406140 458939 517499 596935 685819 Private 102480 115590 132132 149839 169511 200378 232776 3. Domestic Demand [(2)+(3)] 331552 376317 434971 491291 554771 643022 737631 2. According to the provisional data.40 percent of GDP in FY 2011-12.7 it is evident that. on the expenditure side. Increased agricultural output induced domestic demand and the expansion of social safety-net of the Government added up the overall growth in consumption. Gross Domestic Expenditure 24 .63 percent of GDP in the current fiscal year which decreased by 0.

21 4.37 4.45 19.65 6.00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Domestic Savings Investment National Savings It is expected that investment would be boosted up through implementation of Power sector Road Map.67 2006-07 20.94 24.01 19.40 30.65 27.64 19.30 percent of GDP from 5. public investment increased to 6.02 28.01 25.36 18.00 10.45 percent of GDP from 25.00 5.41 18.84 24.35 18. from 19.00 25.14 percent of GDP.46 5.41 5.66 200708 20.38 17. Gross Domestic Product 7.Item 6.30 19.00 % of GDP 20.51 percent of GDP in FY2010-11. All these combined will help achieve higher trajectory of growth. gross investment accelerated to 25.70 19.00 30.25 1. 25 .3: Trends of Savings and Investment 35.15 5.10 1.7: Savings and Investment (As percent of GDP) Item 1. Of this.96 24.35 18. During this period.29 1.31 1.75 24.41 18.40 Source: Bangladesh Bureau of Statistics * Provisional Graph 2.09 1. gross private investment marginally went down to 19.02 2010-11 19.95 19.14 29. Statistical Discrepancy 2005-06 415728 7766 2006-07 472477 13292 2007-08 54583 24638 2008-09 614795 17467 2009-10 694324 15938 2010-11 796704 22694 2011-12* 914784 38841 Source: Bangladesh Bureau of Statistics * Provisional The large-scale investment in infrastructure sector including power and the speedier implementation of Annual Development Programme (ADP) pushed up the level of public investment in FY 2011-12.25 30. importation of LNG.57 2009-10 20.45 6.15 percent in the previous fiscal year.51 28.32 18. exploration of new gas deposits needed for meeting up energy demand. However. use of renewable energy and implementation of infrastructure related programmes planned under ADP and PPP initiatives. Table: 2.00 18.91 25. National Savings 2005-06 20. Domestic Savings Public Private 2.77 24.64 percent in FY2010-11.21 2008-09 20. Investment Public Private 3.00 0.78 2011-12 19.35 1.67 29.00 15.73 1.