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Growth Trend and Changing Structure of GDP in Bangladesh.

Bangladesh, small state of South-East Asia with the total area of 144,000 sq km, can’t still shake off the ill-reputation of being one of the least developed countries, shadowed by miserable poverty, high illiteracy rate and a gigantic population of  about 16 crore.  1 Moreover natural disasters such as seasonal inundation, cyclones, draughts etc. constantly pursue its lot every year, which break the backbone of the economy and frustrate future planning. Economy is sick with high inflation rate. 

The GDP, chief indicator of an economy, shows that for a long time, Bangladesh economy was backward. The years after independence, the size of Real GDP, Per Capita GDP and their growth rates was small.

The condition improved from 1990. Yet, still the growth trend and the structural changes of GDP in Bangladesh are not satisfactory. Many problems are responsible for this unsatisfactory GDP. These are the shortage of domestic food production, narrow structure of exports, increasing growth rate of imports, failure in the invocation of much Foreign Direct Investment (FDI), a defective banking system with cumulative interest of loans, continuous loss in the public enterprises, poor infrastructure, inefficient taxation, high inflation rate, political instability and the serious deterioration of law and order situation. If these problems are solved, dynamic changes will come in the percentages of GDP……Click for details

World Bank Observation in GDP growth.

The World Bank (WB) in its latest report on global economic prospects has projected a steady economic growth for Bangladesh in the next two years, reports BSS.

The "Global Economic Prospects 2011: published in Washington DC, predicted a slower growth of global economy in 2011 and 2012, but projected an upward trend in GDP growth rate in Bangladesh in the same period. 

View Research & Study Reports :
 (In Context of Bangladesh)

The WB estimated that global GDP, which expanded by 3.9 per cent in 2010, would slow to 3.3 per cent in 2011 and 2.6 per cent in 2012. But the GDP in Bangladesh would increase to 6.1 per cent at the end of this year and 6.3 per cent by 2012 from the last year's 5.8 per cent.

According to the report, Indian economy will grow by 8.7 per cent in 2011 and by 9.5 per cent in 2012 when Pakistan will suffer a slide with only 2.6 per cent growth this year, almost half of the last year's 4.4 per cent growth. Pakistan's GDP will, however, be eased slightly to 3.8 per cent next year.

About the world economy, the report said the global economy was moving from a post-crisis bounce-back phase of the recovery to slower but at solid paces growth, with developing countries contributing almost half of growth.

"In most developing countries, GDP has regained levels that would have prevailed had there been no boom-bust cycle. While steady growth is projected through 2012, the recovery in several economies in emerging Europe and Central Asia and in some high-income countries is tentative. Without corrective domestic policies, high household debt and unemployment, and weak housing and banking sectors are likely to mute the recovery," the report said. 

Bangladesh Economic Overview  2011

The economy has grown 5-6% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, and slow implementation of economic reforms. Bangladesh remains a poor, overpopulated, and inefficiently-governed nation. Although more than half of GDP is generated through the service sector, 45% of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product. Bangladesh's growth was resilient during the 2008-09 global financial crisis and recession. Garment exports, totaling $12.3 billion in FY09 and remittances from overseas Bangladeshis totaling $9.7 billion in FY09 accounted for almost 25% of GDP…………Click for details. 

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