• GDP, • savings, • Investment and employment, • Export and import, • Tourism, • Recent economic development. GDP (Bangladesh)
Gross domestic product (GDP) is a monetary
measure of the market value of all the final goods and services produced in a specific time period. The OECD defines GDP as "an aggregate measure of production equal to the sum of the gross values added of all resident and institutional units engaged in production and services. • The ratio of GDP to the total population of the region is the per capita GDP and the same is called Mean Standard of Living. • GDP is often used as a metric for international comparisons as well as a broad measure of economic progress. It is often considered to be the "world's most powerful statistical indicator of national development and progress“ • Now economy of Bangladesh is composed of three main sector. • 1) Agriculture • 2) Industry and • 3) Service. • The economy of Bangladesh is a developing market economy. It's the 39th largest in the world in nominal terms, and 30th largest by purchasing power parity; it is classified among the Next Eleven emerging market middle income economies and a frontier market. • In the first quarter of 2019, Bangladesh's was the world's seventh fastest growing economy with a rate of 7.3% real GDP annual growth. • Dhaka and Chittagong are the principal financial centers of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange.
• The financial sector of Bangladesh is the second
largest in the Indian subcontinent. Bangladesh is one of the world's fastest growing economy. • In the decade since 2004, Bangladesh averaged a GDP growth of 6.5%, that has been largely driven by its exports of ready made garments, remittances and the domestic agricultural sector. • The country has pursued export-oriented industrialization, with its key export sectors include textiles, shipbuilding, fish and seafood, jute and leather goods. It has also developed self-sufficient industries in pharmaceuticals, steel and food processing.
• Bangladesh's telecommunication industry has
witnessed rapid growth over the years, receiving high investment from foreign companies. • Bangladesh also has substantial reserves of natural gas and is Asia's seventh largest gas producer. Offshore exploration activities are increasing in its maritime territory in the Bay of Bengal. It also has large deposits of limestone. • The government promotes the Digital Bangladesh scheme as part of its efforts to develop the country's growing information technology sector. • As of 2020, Bangladesh's GDP per capita income is estimated as per IMF data at US$5,139 (PPP) and US$2,064 (nominal). • Bangladesh is a member of the D-8 Organization for Economic Cooperation, the South Asian Association for Regional Cooperation, the International Monetary Fund, the World Bank, the World Trade Organization and the Asian Infrastructure Investment Bank. • The economy faces challenges of infrastructure bottlenecks, bureaucratic corruption, and youth unemployment. • Bangladesh's Gross Domestic Product(GDP) is set to grow by the country's economic history in the current fiscal history • Bangladesh gdp for 2019 was $302.57B, a 10.41% increase from 2018. • Bangladesh gdp for 2018 was $274.04B, a 9.74% increase from 2017. • Bangladesh gdp for 2017 was $249.71B, a 12.78% increase from 2016. • Bangladesh gdp for 2016 was $221.42B, a 13.5% increase from 2015. • Bangladesh is strategically important for the economies of Northeast India, Nepal and Bhutan, as Bangladeshi seaports provide maritime access for these landlocked regions and countries. • China also views Bangladesh as a potential gateway for its landlocked southwest, including Tibet, Sichuan and Yunnan. • Savings (Bangladesh) • Bangladesh Gross Savings Rate was measured at 28.4% in Jun 2019,compared with 27.4% in the previous year. • Bangladesh Gross Savings Rate is updated yearly, available from Jun 2006 to Jun 2019,With an average rate of 28.9%. • The data reached an all time high of 30.8% in Jun 2016 and a record low of 27.4% in Jun 2018. • The Jun 2019 data is provincial estimates only. • Bangladesh's Nominal GDP reached 274.0 USD in Jun 2018.Its GDP deflator(implicit price deflator) increased 4.2% in Jun 2019.
• Bangladesh's GDP per Capita reached 1,827.0 USD in
Jun 2019
• Personal Savings in Bangladesh increased to 6067.90
BDT Billion in 2019 from 5138.92 BDT Billion in 2018. • Bangladesh’s recent economic development journey has – so far – been a successful one. The country has a nearly unmatched growth rate with GDP expected to rise to 7 per cent in 2020, meaning GDP per capita is on course to surpass India by 2030. • Poverty has rapidly reduced from over 40 per cent in 1991 to around 14 per cent in 2016/17, according to the World Bank. The largest least developed country (LDC) in the world in terms of both population and economic size, Bangladesh hopes to graduate from the UN’s LDC category in 2024. Investment and employment • Bangladesh is following similar development reforms to those experienced by India in recent years and we believe it could emerge as one of the strongest economies in the region. • We’ve been investing in Bangladesh for more than ten years and are excited by the country’s potential economic growth and the benefits this can bring to its people. • The majority of our portfolio value (80 per cent) is in infrastructure, but our investments span a number of sectors including communications, manufacturing and trade. • We are particularly interested in financial institutions, domestic manufacturing and infrastructure. • The stock market capitalisation of the Dhaka Stock Exchange in Bangladesh crossed $10 billion in November 2007 and the $30 billion mark in 2009, and US$50 billion in August 2010. • Bangladesh had the best performing stock market in Asia during the recent global recession between 2007 and 2010, due to relatively low correlations with developed country stock markets. • Recent (2011) trends for investing in Bangladesh as Saudi Arabia trying to secure public and private investment in oil and gas, power and transportation projects, United Arab Emirates (UAE) is keen to invest in growing shipbuilding industry in Bangladesh encouraged by comparative cost advantage, • Tata, an India-based leading industrial multinational to invest Taka 1500 crore to set up an automobile industry in Bangladesh, World Bank to invest in rural roads improving quality of live, • the Rwandan entrepreneurs are keen to invest in Bangladesh's pharmaceuticals sector considering its potentiality in international market, Samsung sought to lease 500 industrial plots from the export zones authority to set up an electronics hub in Bangladesh with an • National Board of Revenue (NBR) is set to withdraw tax rebate facilities on investment in the capital market by individual taxpayers from the fiscal 2011–12. In 2011, Japan Bank for International Cooperation ranked Bangladesh as the 15th best investment destination for foreign investors
• We’re invested in RFL Electronics, an electronic goods
manufacturer and one of the largest employers in the country outside of the garment industry. • This investment has shown that producing these goods domestically can help to make them more affordable and drive consumption – and further develop the strength of the domestic manufacturing base. • Furthermore, as an investor and partner to RFL, we’ve been able to help implement key environmental and social changes , which can bring real added value to a business and help its ambitions to expand into international markets. • Furthermore, as an investor and partner to RFL, we’ve been able to help implement key environmental and social changes , which can bring real added value to a business and help its ambitions to expand into international markets. • Some critical challenges prevent investors from making long-term commitments. The country still lags in the World Bank’s Ease of Doing Business Index, ranking 176 out of 190 in 2018. • It’s through these efforts to shape the investment environment that we seek to mobilise further investment in the country, as we continue to build on our experience in supporting sustainable development in Bangladesh. • Employment • By economic sector in Bangladesh 2020 • The statistic shows the distribution of employment in Bangladesh by economic sector from 2010 to 2020. • In 2020, 37.75 percent of the employees in Bangladesh were active in the agricultural sector, 21.65 percent in industry and 40.61 percent in the service sector. Nov 10, 2020 • Job creation is an immense challenge for Bangladesh. • Unemployment rate of 4.2%(3.1% for males and 6.7% for females) • We need to look at what has worked best to create jobs, focusing on sectors that have the highest potential. • Agriculture • Agriculture is the largest employment sector in Bangladesh. The performance of this sector has an overwhelming impact on major macroeconomic objectives like employment generation, poverty alleviation, human resources development, food security, etc. • In 2020, 37.75 percent of the employees in Bangladesh were active in the agricultural sector, • Underemployment remains a serious problem, and a growing concern for Bangladesh's agricultural sector will be its ability to absorb additional manpower. • Finding alternative sources of employment will continue to be a daunting problem for future governments, particularly with the increasing numbers. • For successful transition of Bangladesh , agriculture will also have to play a major role as an engine for economic growth and employment • Manufacturing and industry • Many new jobs – mostly for women – have been created by the country's dynamic private ready-made garment industry, which grew at double-digit rates through most of the 1990s. • By the late 1990s, about 1.5 million people, mostly women, were employed in the garments sector as well as Leather products specially Footwear (Shoe manufacturing unit). • During 2001–2002, export earnings from ready-made garments reached $3,125 million, representing 52% of Bangladesh's total exports. Bangladesh has overtaken India in apparel exports in 2009, its exports stood at 2.66 billion US dollar, ahead of India's 2.27 billion US dollar and in 2014 the export rose to $3.12 billion every month. • At the fiscal year 2018, Bangladesh has been able to garner US$36.67 billion export earnings by exporting manufactured goods, of which, 83.49 percent has come from the apparel • In 2006, tens of thousands of workers mobilized in one of the country's largest strike movements, affecting almost all of the 4,000 factories. • The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) uses police forces to crack down. Three workers were killed, hundreds more were wounded by bullets, or imprisoned. • In 2010, after a new strike movement, nearly 1,000 people were injured among workers as a result of the repression. In last decade, poverty dropped by around one third with significant improvement in human development index, literacy, life expectancy and per capita food consumption. With economy growing close to 6% per year, more than 15 million people have moved out of poverty since 1992. • Information and Communication Technology: • is growing example of what can be achieved after the current government's relentless effort to create a skilled workforce in ICT sector. The ICT workforce consisted of private sector and freelance skilled ICT workforce. • The ICT sector also contributed to Bangladesh's economic growth. The ICT adviser to the prime minister, is hopeful that Bangladesh will become a major player in the ICT sector in the future. In the last 3 years, Bangladesh has seen a tremendous growth in the ICT sector. • Bangladesh is a market of 160 million people with vast consumer spending around mobile phones, telco and internet. Bangladesh has 80 million internet users, an estimated 9% growth in internet use by June 2017 • Bangladesh currently has an active 23 million Facebook users. Bangladesh currently has 143.1 million mobile phone customers. • Bangladesh has exported $800 million worth of software, games, outsourcing and services to European countries, the United States, Canada, Russia and India by 30 June 2017. • The Junior Minister for ICTelecommunications and Information Technology sT division of the Ministry of Post, aid that Bangladesh aims to raise its export earnings from the information and communications technology (ICT) sector to $5 billion by 2021. • In 2018 Bangladesh was the number 42 economy in the world in terms of GDP (current US$), the number 54 in total exports, • the number 50 in total imports, the number 156 economy in terms of GDP per capita (current US$) and the number 127 most complex economy according to the Economic Complexity Index (ECI) • Exports: The top exports of Bangladesh are • Non-Knit Men's Suits($6.89B), • Knit T-shirts ($6.76B), • Knit Sweaters ($5.45B), • Non-Knit Women's Suits ($4.91B), and • Non-Knit Men's Shirts ($2.44B), • Exporting mostly to • Germany ($6.88B), • United States ($6.23B), • United Kingdom ($3.7B), • Spain ($3.21B), and • France ($3.06B). • Bangladesh imported US$53 Billion worth of goods from around the globe in 2018.up by 10.3% since 2015 and up by 6.2 from2017 to 2018 • Imports: The top imports of Bangladesh are • Refined Petroleum($4.14B), • Raw Cotton ($1.93B), • Heavy Pure Woven Cotton ($1.38B), • Light Pure Woven Cotton ($1.11B), and • Non-Retail Pure Cotton Yarn($1.1B), • Importing mostly from • China ($17.7B), • India ($8.54B), • Singapore ($3.34B), • Malaysia ($2.09B), and • Indonesia ($1.89B). • Location: Bangladesh borders Burma and India by land. • Garment Industry of Bangladesh • The readymade garments industry acts as a catalyst for the development of Bangladesh. The "Made in Bangladesh" tag has also brought glory for the country, making it a prestigious brand across the globe. Bangladesh, which was once termed by cynics a "bottomless basket" has now become a "basket full of wonders." • After the independence in 1971, Bangladesh was one of poorest countries in the world. No major industries were developed in Bangladesh, when it was known as East Pakistan, due to discriminatory attitude and policies of the government of the then West Pakistan. So, rebuilding the war-ravaged country with limited resources appeared to be the biggest challenge. • The industry that has been making crucial contribution to rebuilding the country and its economy is none other than the readymade garment (RMG) industry which is now the single biggest export earner for Bangladesh. The sector accounts for 81% of total export earnings of the country. • The apparel industry of Bangladesh started its journey in the 1980s and has come to the position it is in today. The late Nurool Quader Khan was the pioneer of the readymade garment industry in Bangladesh. He had a vision of how to transform the country. In 1978, he sent 130 trainees to South Korea where they learned how to produce readymade garments. • With those trainees, he set up the first factory "Desh Garments" to produce garments for export. • At the same time, the late Akhter Mohammad Musa of Bond Garments, the late Mohammad Reazuddin of Reaz Garments, MdHumayun of Paris Garments, Engineer Mohammad Fazlul Azim of Azim Group, Major (Retd) Abdul Mannan of Sunman Group, M Shamsur Rahman of Stylecraft Limited, • The first President of BGMEA, AM Subid Ali of Aristocrat Limited also came forward and established some of the first garment factories in Bangladesh. • Following their footsteps, other prudent and hardworking entrepreneurs started RMG factories in the country. • Since then, Bangladeshi garment industry did not need to look behind. Despite many difficulties faced by the sector over the past years, it has carved a niche in world market and kept continuing to show robust performance. • Strength • Considerable Qualified/keen to learn workforce available at low labor charges. • Energy at low price • Easily accessible infrastructure like sea road, railroad, river and air communication. • Accessibility of fundamental infrastructure, which is about 3 decade old, mainly established by the Korean, Taiwanese and Hong Kong Chinese industrialists. • FDI is legally permitted. • Moderately open Economy, particularly in the Export Promotion Zones. • GSP under EBA (Everything But Arms) for Least Developed Country applicable (Duty free to EU). • Improved GSP advantages under Regional Cumulative. • Looking forward to Duty Free Excess to US, talks are on, and appear to be on hopeful track. • Investment assured under Foreign Private Investment (Promotion and Protection) Act, 1980 which secures all foreign investments in Bangladesh. • Overseas Private Investment Corporation, USA insurance and finance agendas operable • Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which protection and safety measures are available. • Weakness of currency against dollar and the condition will persist to help exporters • Readiness of new units to enhance systems and create infrastructure accordant with product growth and fast reactions to circumstances • Problems surrounding readymade garments sector: • The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. National labor laws do not apply in the EPZs, leaving BEPZA in full control over work conditions, wages and benefits. • Garment factories in Bangladesh provide employment to 40 percent of industrial workers. But without the proper laws the worker are demanding their various wants and as a result conflict is began with the industry • 1. Raw materials: • Bangladesh imports raw materials for garments like cotton, thread color etc. This dependence on raw materials hampers the development of garments industry. Moreover, foreign suppliers often supply low quality materials, which result in low quality products • 2. Unskilled workers: • Most of the illiterate women workers employed in garments are unskilled and so their products often become lower in quality. • 3. Improper working environment: • Taking the advantages of workers' poverty and ignorance the owners forced them to work in unsafe and unhealthy work place overcrowded with workers beyond capacity of the factory floor and improper ventilation. • Most of the garment factories in our country lack the basic amenities where our garment workers sweat their brows from morning to evening to earn our countries the major portion of our foreign exchange. Anybody visiting the factory the first impression he or she will have that these workers are in a roost. • Improper ventilation, stuffy situation, filthy rooms are the characteristics of the majority of our factories. The owners profit are the first priority and this attitude has gone to such an extent that they do not care about their lives. • 4. Lack of managerial knowledge: • There are some other problems which are associated with this sector. Those are- lack of marketing tactics, absence of easily on-hand middle management, a small number of manufacturing methods, lack of training organizations for industrial workers, supervisors and managers, autocratic approach of nearly all the investors, fewer process units for textiles and garments, sluggish backward or forward blending procedure, incompetent ports, entry/exit complicated and loading/unloading takes much time, time-consuming custom clearance etc. • 5. Gendered division of labor: • In the garment industry in Bangladesh, tasks are allocated largely on the basis of gender. This determines many of the working conditions of women workers. All the workers in the sewing section are women, while almost all those in the cutting, ironing and finishing sections are men. • Women workers are absorbed in a variety of occupations from cutting, sewing, inserting buttons, making button holes, checking, cleaning the threads, ironing, folding, packing and training to supervising. • Women work mainly as helpers, machinists and less frequently, as line supervisors and quality controllers. There are no female cutting masters. Men dominate the administrative and management level jobs. Women are discriminated against in terms of access to higher-paid white collar and management positions. • When asked why they prefer to employ women foe sewing, the owner and managers gave several reasons. Most felt that sewing is traditionally done by women and that women are more patient and more controllable than men. • 6. Wages: • The government of Bangladesh sets minimum wages for various categories of workers. According of Minimum Wage Ordinance 1994, apprentices’ helpers are to receive Tk500 and Tk930 per month respectively. Apprentices are helpers who have been working in the garment industry for less than three months. • After three months, Apprentices are appointed as helpers. Often female helpers are discriminated against in terms of wages levels, and these wages are also often fixed far below the minimum wage rate. A survey conducted in 1998 showed that 73% of female helpers, as opposed to 15% of their male counterparts, did not receive even the minimum wage. • 7. Insufficient of loan: • Insufficiency of loan in time, uncertainly of electricity, delay in getting materials, lack of communication, problem in taxes etc. Often obstruct the industry. • In the world market 115 to 120 items of dress are in demand where as Bangladesh supplies only ten to twelve items of garments. India, south Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made remarkable progress in garments industries. Bangladesh is going to challenge the garments of those countries in the world market. • 8. Unit labor cost: • Bangladesh has the cheapest unit labor cost in South Asia. It costs only 11 cents to produce a shirt in Bangladesh, whereas it costs 79 cents in Sri Lanka and 26 cents in India. Clearly, Bangladesh’s comparative advantage lies in having the cheapest unit labor cost. • 9. Working hours: • Though the wages are low, the working hours are very long. The RMG factories claim to operate one eight-hour shift six days a week. The 1965 factory Act allows women to work delivery deadlines; however, women are virtually compelled to work after 8 o’clock. Sometimes they work until 3 o’clock in the morning and report back to start work again five hours later ar 8 o’clock. They are asked to work whole months at a time the Factory Act, which stipulates that no employee should work more than ten days consecutively without a break. • 10. Poor accommodation facilities: • As most of the garment workers come from the poor family and comes from the remote areas and they have to attend to the duties on time, these workers have to hire a room near the factory where four to five huddle in a room and spend life in sub human condition. • For four to five workers there is one common latrine and a kitchen for which they have to pay from Tk=2000 to Tk=2500/-.They share this amount among themselves to minimize the accommodation expense. • One cannot believe their eyes in what horrible condition they have to pass out their time after almost whole day of hard work in the factory. After laborious job they come into their roost, cook their food and have their dinner or lunch in unhygienic floor or bed and sleep where they take their food. They share the single bed or sleep on the floor. • 11. Safety Problems: • Because of the carelessness of the factory management and for their arrogance factory doors used to be kept locked for security reason defying act • Safety need for the worker is mandatory to maintain in all the organization. But without the facility of this necessary product a lot of accident is occur incurred every year in most of the company. • 12. Political crisis: • Garments industries often pay dearly for political unrest, hartal and terrorism etc. • The international market has withdrawn quota advantage over garments export form Bangladesh since December 2005. • Bangladesh has to advance cautiously for getting better 0position of her garments in the world market. Finally destruction of twin tower in 11 September 2001. invasion on Afghanistan and Iraq and depression in world Economy have seriously affected the export trade of Bangladesh.
• Major market of RMG industry
• The RMG industry of Bangladesh fully depends on the export. The major importer of RMG products are USA and Europe. • But there is other country that has a contribution to the total RMG export. The following table contains the list of major importer of our RMG products. • Table- : Major market of RMG industry • (Tk in million) • Country Amount • Belgium---------------3812.00 • Canada----------------6218.00 • France-----------------13078.00 • Germany--------------27008.00 • India--------------------80.00 • Italy---------------------22.00 • Netherlands----------10619.00 • Sweden----------------3058.00 • Turkey------------------2681.00 • U.K.---------------------15411.00 • U.S.A--------------------43368.00 • Source: Bangladesh bank ( April to June) • • Contribution to Economy • The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. • It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. • The industry plays a significant role in terms of employment generation. • Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry. • In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. • Hence it is quite apparent that this sector has played a massive role in the economic development of the country. • RMG’s contribution in terms of GDP is highly remarkable; it has reached 13 percent of GDP which was only about 3 percent in 1991. • It also plays a pivotal role to promote the development of other key sectors of the economy like banking, insurance, shipping, hotel, tourism, road transportation, railway container services, etc. • One of the key advantages of the RMG industry is its cheap labor force, which provides a competitive edge over its competitors. • The sector has created employment opportunities for about two million people of which 70 percent are women who mostly come from rural areas. • Thus the industry helps in the country’s social development, women empowerment and poverty alleviation. • Currently RMG earns the lion’s share of foreign exchange earnings. • Tourism in Bangladesh: • Bangladesh's tourist attractions include historical monuments, resorts, beaches, picnic spots, forests and tribal people, wildlife of various species. Activities for tourists include angling, water skiing, river cruising, hiking, rowing, yachting, and sea bathing. • In the northern part, comprising the Rajshahi division, there are archaeological sites, including the temple city Puthia in Rajshahi; the largest and most ancient archaeological site, Mahasthangarh in Bogra. • The single largest Buddhist monastery, Paharpur in Naogaon; the most ornamental terracota Hindu temple, Kantaji Temple, and many rajbaris or palaces of old zamindars. • In the south-eastern part, which is the Chittagong Division, there are natural and hilly areas like Chittagong Hill Tracts, along with sandy sea beaches. The most notable beach, in Cox's Bazar, is a contender for the title of longest unbroken sandy sea beach in the world.[3] • Cox's Bazar is the longest natural unbroken sea beach in the world. • In the south-western part, mainly the Khulna Division, there is the Sundarbans, the largest mangrove forest of the world with royal Bengal tiger and spotted deer. • The historically and architecturally important sixty domed mosque in Bagerhat is a notable site. In the north-eastern part, Sylhet division, there is a green carpet of tea plants on small hillocks. • Natural reserved forests are great attractions. Migratory birds in winter, particularly in the haor areas, are also very attractive in this area. • Ministry of Tourism and The Civil Aviation Ministry designs national policies for the development and promotion of tourism. • The Ministry also maintains the Beautiful Bangladesh campaign. • Bangladesh Government has formed Tourist Police unit to better protect local and foreign tourists as well as look after the nature and wildlife in the tourist spots. THANK YOU VERY MUCH