Skip to main content

The economy of Bangladesh

Bangladesh is a low-income country. But it has a stable economy. Bangladesh has the second most ‘pro-capitalist population’ in the developing world to give another boost to the economy. Between 2004 and 2014 the average GDP growth rate was 6%. Now it is over 6.5%.

Since independence in 1971 the economy of Bangladesh has made a gradual progress. Now Bangladesh is considered as part of the Next Eleven Emerging Market and one of the Frontier Five. Before 1980, the economy was largely dependent on jute and jute products. From 1990s onward, textile, garment, pharmaceuticals, shipbuilding ceramics, leather goods and electronics came forward. Beximco, ACI, Square Group are the market leaders.

And today, the economy of Bangladesh is led by export-oriented industrialization including the garment industry and the textile industry. Garment industries contribute the most. Up to 6-8% of the total growth of the country comes from the sector. Now, there are more than 5000 garment industries across the country. The BGMEA said textile exports are expected to rise to USD 15 billion by the end of 2015.

As Bangladesh is situated in one of the most fertile regions on earth, agriculture has a vital impact on the economy. In rice production Bangladesh is currently the third-largest in the world. Also Bangladesh ranks fifth in the global production of fish and seafood.

After independence the country had only 348.33 million in export revenues, 90% of which came from exporting only jute and jute products. Tea and leather were other major products. But in the next four decades, the economy has made a remarkable progress by exporting ready-made garment products. Pharmaceutical industry and the shipbuilding industry are developing day by day and these sectors are considered as more potential sectors of the country.

Local Bangladeshi companies are also contributing to the economy. They are expanding their operations in every potential sector. Companies like Beximco Group, Square Group, Pran Group are creating more business, creating new product lines and increasing employment generation by a good margin. These companies, specially Beximco Group, are developing corporate culture as well.

Main donors are the World Bank, the Asian Development Bank, United Nations Development programme, United States of America, Japan, Saudi Arabia and Western European countries those helped Bangladesh develop its economy. In 2015 per-capita income reached at USD 1,314 which is not too bad.

Bangladesh is in the interest parameters of the multinational companies. Many top companies of the U.S. and Europe entered Bangladeshi market and many are considering. Foreign direct investment is increasing.

Comments

Popular posts from this blog

After Beximco Group, Square Group and Pran Group, PHP Family is coming up

Along with Beximco Group, Square Group, Pran Group, PHP Family is contributing immensely to the economic progress of Bangladesh. Beximco Group and Square Group are the top private sector players but companies like PHP Family are coming up. Sufi Mohammed Mizanur Rahman, an ex banker, established PHP Group which was later re-named as PHS Family. PHP Float Glass is a concern of PHP group and is the pioneer of glass industries in the country. Now PHP float glass industry is the largest glass producer. Ample success in Glass sector along with other indusial sector, PHP group is contributing much to the development of the country. PHP float glass industry limited is Chittagong based sister concern of PHP group. Built on 30-acres of land, with a total investment of Tk 300 crore, the PHP Float Glass Industry at Barabkunda of Sitakunda in Chittagong launched its commercial production in 2005.It produces various types of glass according to local demands. It produces clear-glass sheet of 2MM

About Nasir Group

Nasir Group is one of the largest industrial conglomerates in Bangladesh. The industries include industrial glass, tobacco, printing and packages, light engineering, melamine. It is one of the leading industries in glass manufacturing sector of the country. The company started its journey in 1977. Now this group expands in every industrial sectors of Bangladesh like tobacco, melamine, printing and packaging and footwear. Recently it started producing energy saving light bulbs. Nasir group has a great role in socio-economic development of the country. Dominance in Glass Sector Glass is one of the products of Nasir Group of Industry. Nasir group has a vital role to make Bangladesh self-sufficient in glass sector. This company provides a large portion of glasses to meet country’s demand. Nasir group started float glass production in 2005. The company built its glass manufacturing factory in Gazipur at a cost of Tk.300 crore. Nasir Glass now holds more than 40 percent of the total mark

Bangladesh Supermarket Owners’ Association demands a uniform VAT rate

Bangladesh Supermarket Owners’ Association, otherwise known as BSOA requested NBR for implementing a uniform VAT rate for all retail super shops of the country. This request is made so that they can continue the business in full pace. The government applies a 4% VAT on sales of various supermarkets including Agora, Shwapno and Meena Bazar while authorities imposed a package VAT system to general shops according to their sizes and locations. Bangladesh Supermarket Owners’ Association prefers paying VAT on per square feet rate. Customers do not like to pay 4% VAT on sales because general shops pay a flat VAT rate. The BSOA demanded the government either withdraws 4% VAT or implement package VAT system. It says in its statement that otherwise this discrimination will gradually destroy this sector. In comparison with similar markets, in Indonesia, there are 14000 stores of only two chain supermarkets and 3000 are in India. Even, in Sri Lanka, there are 1000 stores while Bangladesh h