"Economy of Bangladesh"

GDP of BANGLADESH:

The economy of Bangladesh is a rapidly developing market-based economy. Its per capita income in 2012 was estimated to be US$747.34. According to the International Monetary Fund, Bangladesh ranked as the 44th largest economy in the world in 2012 in PPP terms and 57th largest in nominal terms, among the Next Eleven of Goldman Sachs and D-8 economies, with a gross domestic product of US$306 billion in PPP terms and US$115.6 billion in nominal terms. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leather goods, ceramics, ready-made goods.

Exports of textiles and garments are the largest source of foreign exchange earnings. Shipbuilding, pharmaceuticals and consumer goods manufacturing are important emerging industries, while the jute sector is re-emerging with increasing global demand for green fibres. Remittances from Bangladeshis working overseas, mainly in the Middle East, are another major source of foreign exchange earnings. Other important export sectors include fish and seafood, ceramics, cement, fertilizer, leather and leather goods, food products, software and IT services. Bangladesh has also made major strides in its human development index.

The land is devoted mainly to rice and jute cultivation as well as fruits and other produce, although wheat production has increased in recent years; the country is largely self-sufficient in rice production. Bangladesh’s growth of its agricultural industries is due to its fertile deltaic land that depends on its six seasons and multiple harvests.

Transportation, communication, water distribution, and energy infrastructure are rapidly developing. Bangladesh is limited in its reserves of oil, but recently there has been huge development in gas and coal mining. The service sector has expanded rapidly during last two decades and the country’s industrial base remains very positive. The country’s main endowments include its vast human resource base, rich agricultural land, relatively abundant water, substantial reserves of natural gas and coal, major seaports at Chittagong and Mongla, and its central strategic location at the crossroads of the two large burgeoning economic hub groups of SAARC and ASEAN.  According to a 2012 projection by HSBC, Bangladesh will be the world’s 31st largest economy in 2050 when ranked by total gross domestic product and 89th when ranked by GDP per capita.

EXPORT / IMPORT:

Bangladesh Export:

Exports in Bangladesh increased to 2590.20 USD Million in September of 2013 from 2013.40 USD Million in August of 2013. Exports in Bangladesh are reported by the Bangladesh Bank. From 1995 until 2013, Bangladesh Exports averaged 3238.0 USD Million reaching an all time high of 15565.2 USD Million in June of 2009 and a record low of 1024.0 USD Million in October of 2009. Bangladesh exports mainly ready made garments including knit wear and hosiery (75% of exports revenue). Others include: Shrimps, jute goods (including Carpet), leather goods and tea. Bangladesh main exports partners are United States (23% of total), Germany, United Kingdom, France, Japan and India.

Bangladesh Import:

Imports in Bangladesh decreased to 2656.90 USD Million in August of 2013 from 3056.60 USD Million in July of 2013. Imports in Bangladesh are reported by the Bangladesh Bank. From 1995 until 2013, Bangladesh Imports averaged 4363.0 USD Million reaching an all time high of 20291.4 USD Million in June of 2009 and a record low of 1424.2 USD Million in August of 2009. Bangladesh imports mostly petroleum product and oil, machinery and parts, soybean and palm oil, raw cotton, iron and steel and wheat. Bangladesh main imports partners are China (17% of total), India, Indonesia, Singapore and Japan.

MAJOR 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. 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.

Eastern Bengal was known for its fine muslin and silk fabric before the British period. The dyes, yarn, and cloth were the envy of much of the pre-modern world. Bengali muslin, silk, and brocade were worn by the aristocracy of Asia and Europe. The introduction of machine-made textiles from England in the late eighteenth century spelled doom for the costly and time-consuming hand loom process. Cotton growing died out in East Bengal, and the textile industry became dependent on imported yarn. Those who had earned their living in the textile industry were forced to rely more completely on farming. Only the smallest vestiges of a once-thriving cottage industry survived.

Other industries which have shown very strong growth include the textile industry, pharmaceutical industry, shipbuilding industry, information technology, leather industry, steel industry, electronics industry and light engineering industry.

COMMUNICATION NETWORK of BANGLADESH:

The transport sector of Bangladesh consists of a variety of modes. As the country is essentially a flat plain all three modes of surface transport, i.e. road, railway and water, are widely used in carrying both passengers and cargo. The airline network is also extensive and effective.

Road

In Bangladesh, among the various modes of transport, road transport system has been playing a significant role in transporting passengers and goods.

The Roads and Highways Department (RHD) manage several categories of road. RHD has total length of 20,948 Km road unders its control. RHD also control a total number of 4,659 bridges and 6,122 culverts. RHD are currently operating about 161 ferry boats in 81 crossings (13 on national highways, 11 on regional highways and 57 on feeder roads) on its road network throughout the country.

As of January 2010, Local Government Engineering Department (LGED) has so far constructed a total of 133,514 km (64,691 km dirt road and 68,823 km paved roads) upazila and union roads and 971,498 bridges/culverts.

The 4.8 km long Bangabandhu Bridge, which was opened to traffic in 1998, is the eleventh longest in the world. It has established a strategic link between the East and the West of Bangladesh. It is generating multifaceted benefits to the people and promoting inter-regional trade. Apart from quick movement of goods and passenger traffic, it is facilitating transmission of electricity and natural gas and has integrated the telecommunication links.

Air

The Civil Aviation Authority is a public sector entity entrusted to construct, maintain and supervise airports and regulate air traffic. The national flag carrier Biman flies to 26 international and eight domestic destinations.

There are now 13 operational airports and Short Take-off and Landing (STOL) ports in Bangladesh. These are Dhaka, Barisal, Chittagong, Comilla, Cox’s Bazar, Ishurdi, Jessore, Rajshahi, Syedpur, Sylhet and Thakurgaon. Of these, the airports at Dhaka, Chittagong and Sylhet serve international routes. Air cargo and STOL services have been handed over to the private sector by the government.

Bangladesh can be reached by air from any part of the world. Several international carriers fly to and from Dhaka. Biman, Bangladesh airlines connects Dhaka with 27 major cities of the world, which are: Abu Dhabi, Amsterdam, Athens, Bangkok, Bombay, Calcutta, Doha, Dubai, Jeddah, Karachi, Kathmandu, Kuala Lumpur, London, Muscat, Dhahran, Baghdad, Kuwait, Yangoon, Rome, Tripoli, Tokyo, Singapore, Bahrain, Frankfurt, Ho Chi Minh City, Hong Kong, Jakarta, Sarjah, Seoul, Riyadh and Delhi.

Rail

The Bangladesh Railway provides an efficient service to places of interest such as Chittagong, Sylhet, Khulna, Mymensingh, Bogra, Rajshahi, Dinajpuir starting from Dhaka. The inter-city Express Service is available to and from important cities at cheap fares.

About 32% of the total area of Bangladesh is effectively covered by railways. Bangladesh Railway had a total network of 2,835.04 km (Broad Gauge

659.33 km, Dual Gauge 374.83 km and Meter Gauge-1,800.88 km) and a total of 440 stations at the end of the year 2008-2009. Train services between Dhaka-Kolkata have been commenced on 14 April 2008 in order to establish communication between Bangladesh and India. After inclusion of railway track over the Jamuna Bridge, railway link between east and west zone has been established.

Waterways

Country made crafts are the most widely used carriers on the rivers. These carry passengers and merchandise on a large scale. The landscape of Bangladesh is dominated by about 250 major rivers which flow essentially north-south. The alluvial flood plain formed by these rivers covers most of the country. Wherever there is a river and a village, a launch or steamer will ply for trade.

Bangladesh Inland Water Transport Authority (BIWTA) has been established by the government for maintenance of navigability of ports and channels while the state-owned BIWTC provides passenger and cargo services in inland waterways and coastal areas of the country.

The entire coast along the Bay of Bengal is 710 km long. There are two major ports in the country. Chittagong, the oldest port, has been an entry-port for at least 1,000 years. The Mongla port in Khulna region serves the western part of Bangladesh.