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Assignment # 1

Decade-wise GDP comparison of Bangladesh and lateral


sector-wise comparison of GDP of 5 other countries

Prepared for

Dr. Muhammad Ziaulhaq Mamun


Professor, Institute of Business Administration
University of Dhaka

Prepared by

Sayma Zerin
ID # 53
MBA 57D

January 24, 2018


Institute of Business Administration
University of Dhaka
GDP or Gross domestic product (GDP) is a monetary measure of the market value of all final
goods and services produced in a period (quarterly or yearly) of time. Nominal GDP estimates
are commonly used to determine the economic performance of a whole country or region, and
to make international comparisons. GDP per capita is often considered an indicator of a
country’s standard of living.

In this report GDP comparison is done using three main sectors: Agriculture, Industry and
Service.

Decade wise GDP comparison of Bangladesh:

The change in GDP composition of Bangladesh over the last few decades starting from 1950s
has been shown by picking data for each decade. GDP remains more or less same within a
decade and hence average result has been considered for this comparison.

Table 1: Sector Wise Composition of GDP in Bangladesh from 1950s to 2011

Year Agriculture Industry Service


1951-1960 62 5 33
1961-1970 55 10 35
1971-1980 44 11 45
1981-1990 32 12 56
1991-2000 25 15 60
2001-2011 18 30 52
2015-2016 15.33 31.28 53.39

Decade wise GDP comparison of Bangladesh


100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1951-1960 1961-1970 1971-1980 1981-1990 1991-2000 2001-2011 2015-2016

Agriculture Industry Service

Figure 1: Sector wise composition of GDP in Bangladesh over the period of 1960s to 2016
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Explanation: Over the years, Bangladesh has experienced significant changes in GDP
composition. Bangladesh used to have an agro based economy. However, as can be seen from
the graph, the economy of Bangladesh has shifted from agriculture based to service and
industry based. In the 50s, the share of agriculture in GDP was 62% and in FY2015/16 it was
only 15%. The service sector bloomed which contributes to 53% of the total GDP today.
Industry sector has also flourished from 1950s and now it holds approx. 32% of the total GDP
of Bangladesh.

Sector wise GDP comparison of other countries for Year 2016:

The comparison of sector wise shares of GDP of 2016 among the G-8 developed, developing,
least developed, neighboring and Oil-rich Middle Eastern countries has been done by taking
one representative country from each group. These countries are-

1. Developed country (G8 member)- Germany


2. Developing country- Malaysia
3. Least Developed country (African)- Benin
4. Middle Eastern country- Qatar
5. Neighboring country- India

Table 2: Sector wise Share of GDP 2016 (In percentage)

Category Country Service Industry Agriculture


Developed Germany 68.91 30.45 0.64
Developing Malaysia 55.68 35.68 8.65
Least Developed Benin 51.08 23.36 25.56
Middle Eastern Qatar 47.63 51.89 0.18
Neighbor country India 53.8 28.85 17.35

Comparision of Sector Wise Share of GDP


Develope Developin Develope Middle Neighbou
Eastern r country

India 53.8 28.85 17.35

Qatar 47.63 51.89 0.18


Least

Benin 51.08 23.36 25.56


d

Malaysia 55.68 35.68 8.65


g

Germany 68.91 30.45 0.64


d

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Service Industry Agriculture

Figure 2: Cross Sectional Comparison of Sector Wise Share of GDP of 5 countries


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Explanation: G8 countries are the 8 most powerful and industrially developed countries. These
developed countries are expected to be more service oriented and less agro based. And as such,
from the above comparison it can be seen that Germany is the leading service oriented country
among the 5 countries that were chosen for comparison; however it has a little more agricultural
GDP share than Qatar. India, a neighboring country of Bangladesh and also a SAARC member
is more agro based than Malaysia which is also a developing country. Both India and Malaysia
have approx. similar service GDP share although Malaysia is less agro based than India. Qatar
is a Middle Eastern country which surprisingly does not have any agricultural produce. It has
the highest industry sector contribution to GDP among the few. Lastly, Benin which is an
African LDC country also has a high service percentage in GDP compared to industry or
agriculture. However, among the compared countries, Benin also has the highest agricultural
GDP share.

To conclude, the more developed a country is, the more industry and service oriented its
economy is.

Data Source:

 www.worldbank.org,
 Bangladesh Bureau of Statistics
 https://www.cia.gov/library/publications/the-worldfactbook/fields/2012.html
 https://www.statista.com/