Bangladesh Economy

Published on Thursday, 21 August 2014

The economy of Bangladesh is the 31th largest economy in the world as measured by purchasing power parity (PPP). It has made significant strides in its economic sector since its independence in 1971. Bangladesh, a country of only 1,47,570 sq. km. has a population of 135 million. Bangladesh has traditionally been an agriculture based economy, the fertile soil and favorable climate have been important factors in making Bangladesh agriculturally rich and attracting large human habitation for earning livelihood. However, we now see a declining contribution of agriculture to Bangladesh?s GDP, and the percentage accounted for by manufacturing, rising. The Light Engineering sector itself contributes nearly 2.15% to the GDP ? this leads us to believe that Bangladesh is well into the trajectory of economic development.? The country is also endowed with natural and mineral resources like natural gas, coal, limestone and fisheries.

The Government of Bangladesh has been making vigorous efforts to accelerate sustainable growth for alleviating poverty and pursuing a strategy of private sector-led growth in a liberalized market economy. The average tariff rate has been reduced. Large-scale reform programs in financial sector, legal system, administration, industrial, export & import policies, fiscal system, investment deregulation, etc. have been implemented and are underway. The government has also made a number of encouraging decisions, such as, allowing Private Export Processing Zones to operate, opening up telecommunication and energy sectors to private sector, strengthening the Board of Investment and launching economic diplomacy in an aggressive way to step up export and to attract foreign direct investment in Bangladesh in a bid to build up a self-reliant economy where the Government is committed to act as a facilitator for augmenting growth of the private sector in the economy.

Remarkable progress has also been achieved in the social indicators. Present adult literacy rate is 60%. The rate of population growth declined to 1.4% in 2001. Availability of safe drinking water increased to 96.2% (of household), average life expectancy to 69.2% years. Other notable indicators are enrollment of girls in school, child immunization, remarkable improvement in social, economic and political status of women, marked improvement in providing health care in rural areas, decline the number of people living below the poverty line, reduction in family size.