Economical overview
Bangladesh has had a strong economic development
since the 1990s and in July 2015, the World Bank
upgraded the country from one of the world's "least
developed countries" to "middle-income countries". Yet
many Bangladeshi people still live in deep poverty.
Traditionally, agriculture has dominated the economy,
but the manufacturing industry - mainly clothing
manufacturing - has been the engine of growth in recent
years.
Since the 1990s, growth has averaged around 6 percent
per year. Even during the global financial crisis of
2008–2009, growth was sustained despite falling sharply
in the outside world. But according to the UN's
development program UNDP, annual growth of almost 10 per
cent is required for poverty reduction to be seriously
reduced.
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Countryaah.com:
Major imports by Bangladesh, covering a full list of top products imported by the country and trade value for each product category.
Corruption, inefficiencies, energy shortages and bad
communications hamper development. Although the pace of
population growth has slowed down, the population is
growing rapidly and there is a lack of employment. In
order to attract foreign investors, it is especially
important to stabilize the political situation; constant
confrontations with politically motivated strikes and
protests have seemed daunting.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including BGD which represents the country of Bangladesh.
Investment in infrastructure
Nonetheless, foreign direct investment has increased
during the 2010s, not least from China. The investments
go mainly to the energy sector, including dozens of new
electric power plants and two nuclear power plants (see
Natural Resources and Energy), as well as planned
infrastructure projects such as highways, a metro in
Dhaka and a deep water port in Sonadia on the Bay of
Bengal.
The dependency on aid is large but has decreased. One
reason is that the country can better handle its own
food supply.
Money that millions of foreign-working Bangladeshi
send home is an important factor in the country's
economy and poverty alleviation. The so-called
remittances correspond to about a tenth of GDP (2013)
and constitute the country's most important source of
foreign currency. Most Bangladeshi overseas work in the
Middle East, especially in the Gulf States.
The fertile soil is the country's most important
natural resource. Yet, it was until the turn of the
millennium before Bangladesh became reasonably
self-sufficient with food. However, malnutrition is
still a major problem among the population. Severe
natural disasters often have devastating consequences
for agriculture and contribute to widespread poverty
(see also Agriculture and Fisheries and Social
Conditions).
Low wages are driving growth
Another important part of the economy is the clothing
industry, which provides about 80 percent of export
earnings. The sector has grown rapidly since the 1990s
and has created many new jobs, not least for women. But
the conditions are tough; Bangladesh's competitive
advantage is the extremely low wages that make
manufacturing move here not only from the western world
but also from China, for example. The raw materials for
the textile industry are imported. From the mid-2010s,
growth in the clothing industry has slowed down. The
reasons are several, not least a series of strikes for
higher wages and better working conditions, and falling
demand for the factory disaster outside Dhaka in 2013
(see Industry and Labor Market).
After independence in 1971, large parts of the
industry were nationalized, but by the end of the same
decade, cautious liberalization had begun. The country
has since pursued a predominantly market economy policy,
which has contributed to falling inflation and increased
growth. However, the privatization of state property is
slow. Bangladesh's loan and aid providers have
threatened to reduce aid unless market economy reforms
are accelerated.
The poor residents' problems with raising capital are
a major obstacle to the country's development. Voluntary
organizations, such as Grameen Bank, have therefore
created lending systems for homeless people. Small loans
are given without collateral at a reasonable interest
rate. More than 90 percent of the borrowers are women.
Grameen Bank and its founder Muhammad Yunus were awarded
the 2006 Nobel Peace Prize for their work for "bottom-up
development".
FACTS - FINANCE
GDP per person
US $ 1 698 (2018)
Total GDP
US $ 274,025 million (2018)
GDP growth
7.9 percent (2018)
Agriculture's share of GDP
13.1 percent (2018)
Manufacturing industry's share of GDP
18.0 percent (2018)
The service sector's share of GDP
53.0 percent (2018)
Inflation
5.5 percent (2019)
Government debt's share of GDP
34.0 percent (2018)
External debt
US $ 47 155 million (2017)
Currency
taka
Merchandise exports
US $ 38,687 million (2018)
Imports
US $ 55,600 million (2018)
Current account
- US $ 7 593 million (2018)
Commodity trade's share of GDP
37 percent (2018)
Main export goods
clothing, jute and jute goods, fish and shrimp
Largest trading partner
Exporting countries: USA, Germany, UK. Importing
countries: China, India, Singapore, Japan. (2016)
2010
December
BNP politicians are accused of war crimes
For the first time, a BNP politician is accused of war crimes. High-ranking
leader Salahuddin Quader Chowdhury is arrested, charged with committing violence
earlier in 2010 and for war crimes in connection with the 1971 liberation war
(see March 2010).
New protests among textile workers
Factory workers in the textile industry go on strike in protest against
employers not paying the minimum wage recently promised by the government.
Production stops in a number of factories and the stock market plunges. Violent
clashes on the streets require several lives.
November
Big protests when Zia is evicted
Khaleda Zia, the leader of the opposition GDP, is evicted from her home in
Dhaka where she has lived for almost 40 years. This is done by order of the
Supreme Court. The eviction triggers several weeks of violent demonstrations and
nationwide strikes that cripple schools, trade and textile exports.
August
Factories are forced to close
During the summer, hundreds of factories are temporarily forced to close in
connection with violent protests against low wages.
July
Basic supplements are deleted
The Supreme Court has ruled that a number of constitutional supplements,
including one that legitimizes military rule in the 1970s, are deleted.
Peaks within Islamist party are seized
Several of the Islamist party Jamaat-e-Islami's highest leader is arrested on
orders by ICT (see March 2009). Among them are party leader
Motiur Rahman Nizami and general secretary Ali Ahsan Mohammad Mojahid.
The fight against militant Islamists is stepping up
The police make a large seizure of weapons and explosives in Dhaka. According
to the authorities, these are preparations for a major terrorist act in the
capital. Efforts against militant Islamists are stepping up.
May
Prosecution of Hasina is closed
The last corruption charges against Prime Minister Sheikh Hasina are closed.
A total of 15 corruption charges were brought against her between 2001 and 2008.
March
Grameen Bank's founder is fired as CEO
The founder of Grameen Bank, Muhammad Yunus, is dismissed from the post of
the bank's CEO following a decision by the Central Bank of Bangladesh (see
Finance). A technicality is cited as a cause, but Yunu's supporters claim he is
being fired for political reasons after getting into conflict with Prime
Minister Hasina.
Disputed tribunal set up
The Bangladeshi ICT ICTY (the International Crimes Tribunal) formally
established, after a decision by 2009. It has the task to examine suspected of
human rights violations during the war of liberation in 1971 (see also Political
system).
January
Five are executed for Sheikh Mujib's murder
Five men are executed for the murder of Sheikh Mujib in 1975. The death
sentences were already sentenced during Sheikh Hasina's first term as prime
minister in 1996–2001.
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