TheEconomy ofBangladeshis amarket-based economy. The country is classified as aNext Elevenemerging marketand one of theFrontier Five. According to a recent opinion poll, Bangladesh has the second most pro-capitalist population in the developing world.[14]Between 2004 and 2014, Bangladesh averaged a GDP growth rate of 6%. The economy is increasingly led by export-oriented industrialization. TheBangladesh textile industryis the second-largest in the world. Other key sectors includepharmaceuticals,shipbuilding, ceramics,leathergoods and electronics. Being situated in one of the most fertile regions on Earth,agricultureplays a crucial role, with the principal cash crops includingrice,jute,tea,wheat,cottonandsugarcane. Bangladesh ranks fifth in the global production offishandseafood.Remittancesfrom theBangladeshi diasporaprovide vital foreign exchange.The Bangladeshtelecomsindustry has witnessed rapid growth over the years and is dominated by foreign investors. The government has emphasized the development of software services and hi-tech industries under theDigital Bangladeshscheme. Bangladesh has substantial reserves ofnatural gasand coal; and many international energy companies are involved in production and exploration activities, including in theBay of Bengal. Regional neighbours are keen to use Bangladeshi ports and railways fortranshipment. Located at the crossroads ofSAARC,BIMSTEC, theASEAN+3and theIndian Ocean, Bangladesh has the potential to emerge as a regional logistics hub.In 2014, per-capita income stood at USD 1,190.[15]While achieving significant macroeconomic stability, Bangladesh continues to face challenges such as infrastructure deficits and energy shortages.Contents[hide] 1Economic history 2Macro-economic trend 3Economic sectors 3.1Agriculture 3.2Manufacturing and industry 3.2.1Apparel sector 3.2.2Shipbuilding and ship breaking 4Investment 4.12010-11 market crash 4.2External trade 5Bangladeshi women and the economy 6Overview 7See also 8References 9External linksEconomic history[edit]

Scentedrice. Bangladesh is the world's 4th largest rice producerEast Bengal - the eastern segment ofBengal- was a historically prosperous region.[16]TheGanges Deltaprovided advantages of a mild, almost tropical climate, fertile soil, ample water, and an abundance of fish, wildlife, and fruit.[16]The standard of living is believed to have been higher compared with other parts of South Asia.[16]As early as the thirteenth century, the region was developing as an agrarian economy.[16]Bengal was the junction of trade routes on the SoutheasternSilk Road. UnderMughal rule, it was a center of the worldwidemuslin,silkandpearltrade.[16]The British, however, on their arrival in the late eighteenth century, chose to developCalcutta, now the capital city ofWest Bengal, as their commercial and administrative center in British India.[16]The development of East Bengal was thereafter limited to agriculture.[16]The administrative infrastructure of the late eighteenth and nineteenth centuries reinforced East Bengal's function as the primary agricultural producerchiefly ofrice,tea,teak,cotton,sugar caneandjute for processors and traders from around Asia and beyond.[16]After its independence from Pakistan, Bangladesh followed a socialist economy by nationalizing all industries, proving to be a critical blunder undertaken by theAwami Leaguegovernment. Some of the same factors that had made East Bengal a prosperous region became disadvantages during the nineteenth and twentieth centuries.[16]As life expectancy increased, the limitations of land and the annual floods increasingly became constraints on economic growth.[16]Traditional agricultural methods became obstacles to the modernization of agriculture.[16]Geography severely limited the development and maintenance of a modern transportation and communications system.[16]

Chittagong harbour, 17th century

Dhaka, 1861.The partition of British India and the emergence ofIndiaandPakistanin 1947 severely disrupted the economic system. The united government of Pakistan expanded the cultivated area and some irrigation facilities, but the rural population generally became poorer between 1947 and 1971 because improvements did not keep pace with rural population increase.[16]Pakistan's five-year plans opted for a development strategy based on industrialization, but the major share of the development budget went to West Pakistan, that is, contemporary Pakistan.[16]The lack of natural resources meant that East Pakistan was heavily dependent on imports, creating a balance of payments problem.[16]Without a substantial industrialization program or adequate agrarian expansion, the economy of East Pakistan steadily declined.[16]Blame was placed by various observers, but especially those in East Pakistan, on the West Pakistani leaders who not only dominated the government but also most of the fledgling industries in East Pakistan.[16]Since Bangladesh followed a socialist economy by nationalizing all industries after its independence, it underwent a slow growth of producing experienced entrepreneurs, managers, administrators, engineers, and technicians.[17]There were critical shortages of essential food grains and other staples because of wartime disruptions.[17]External markets for jute had been lost because of the instability of supply and the increasing popularity of synthetic substitutes.[17]Foreign exchange resources were minuscule, and the banking and monetary systems were unreliable.[17]Although Bangladesh had a large work force, the vast reserves of under trained and underpaid workers were largely illiterate, unskilled, and underemployed.[17]Commercially exploitable industrial resources, except for natural gas, were lacking.[17]Inflation, especially for essential consumer goods, ran between 300 and 400 percent.[17]The war of independence had crippled the transportation system.[17]Hundreds of road and railroad bridges had been destroyed or damaged, and rolling stock was inadequate and in poor repair.[17]The new country was still recovering from a severe cyclone that hit the area in 1970 and cause 250,000 deaths.[17]India came forward immediately with critically measured economic assistance in the first months after Bangladesh achieved independence fromPakistan.[17]Between December 1971 and January 1972, India committed US$232 million in aid to Bangladesh from the politco-economic aid India received from theUSAandUSSR. Official amount of disbursement yet undisclosed.[17]After 1975, Bangladeshi leaders began to turn their attention to developing new industrial capacity and rehabilitating its economy.[18]The static economic model adopted by these early leaders, howeverincluding the nationalization of much of the industrial sectorresulted in inefficiency and economic stagnation.[18]Beginning in late 1975, the government gradually gave greater scope to private sector participation in the economy, a pattern that has continued.[18]Many state-owned enterprises have been privatized, like banking, telecommunication, aviation, media, and jute.[18]Inefficiency in the public sector has been rising however at a gradual pace; external resistance to developing the country's richest natural resources is mounting; and power sectors including infrastructure have all contributed to slowing economic growth.[18]

TheJamuna Multipurpose Bridgewas opened in 1998.In the mid-1980s, there were encouraging signs of progress.[18]Economic policies aimed at encouraging private enterprise and investment, privatizing public industries, reinstating budgetary discipline, and liberalizing the import regime were accelerated.[18]From 1991 to 1993, the government successfully followed an enhanced structural adjustment facility (ESAF) with the International Monetary Fund (IMF) but failed to follow through on reforms in large part because of preoccupation with the government's domestic political troubles.[18]In the late 1990s the government's economic policies became more entrenched, and some of the early gains were lost, which was highlighted by a precipitous drop in foreign direct investment in 2000 and 2001.[18]In June 2003 the IMF approved 3-year, $490-million plan as part of the Poverty Reduction and Growth Facility (PRGF) for Bangladesh that aimed to support the government's economic reform program up to 2006.[18]Seventy million dollars was made available immediately.[18]In the same vein the World Bank approved $536 million in interest-free loans.[18]In the year 2010 Government of India extended a line of credit worth $1 billion to counterbalance China's close relationship with Bangladesh.Bangladesh historically has run a large trade deficit, financed largely through aid receipts and remittances from workers overseas.[18]Foreign reserves dropped markedly in 2001 but stabilized in the USD3 to USD4 billion range (or about 3 months' import cover).[18]In January 2007, reserves stood at $3.74 billion, and then increased to $5.8 billion by January 2008, in November 2009 it surpassed $10.0 billion, and as of April 2011 it surpassed the US $12 billion according to the Bank of Bangladesh, the central bank.[18]The dependence on foreign aid and imports has also decreased gradually since the early 1990s.[19]Macro-economic trend[edit]This is a chart of trend of gross domestic product of Bangladesh at market pricesestimatedby the International Monetary Fund with figures in millions of Bangladeshi Taka. However, this reflects only the formal sector of the economy.YearGross Domestic ProductUS Dollar ExchangeInflation Index(2000=100)Per Capita Income(as% of USA)

1980250,30016.10 Taka201.79

1985597,31831.00 Taka361.19

19901,054,23435.79 Taka581.16

19951,594,21040.27 Taka781.12

20002,453,16052.14 Taka1000.97

20053,913,33463.92 Taka1260.95

20085,003,43868.65 Taka147

201070.20 Taka

201476.20 Taka.

Mean wages were $0.58 per manhour in 2009.Economic sectors[edit]Agriculture[edit]

Map showing the growing areas of major agricultural products.Main article:Agriculture of BangladeshMost Bangladeshis earn their living from agriculture.[18]Although rice and jute are the primary crops, maize and vegetables are assuming greater importance.[18]Due to the expansion of irrigation networks, some wheat producers have switched to cultivation of maize which is used mostly as poultry feed.[18]Tea is grown in the northeast.[18]Because of Bangladesh's fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas.[18]Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food grain production despite the often unfavorable weather conditions.[18]These include better flood control and irrigation, a generally more efficient use of fertilizers, and the establishment of better distribution and rural credit networks.[18]With 28.8 million metric tons produced in 2005-2006 (JulyJune), rice is Bangladesh's principal crop.[18]By comparison, wheat output in 2005-2006 was 9 million metric tons.[18]Population pressure continues to place a severe burden on productive capacity, creating a food deficit, especially of wheat.[18]Foreign assistance and commercial imports fill the gap,[18]but seasonal hunger ("monga") remains a problem.[20]Underemployment remains a serious problem, and a growing concern for Bangladesh's agricultural sector will be its ability to absorb additional manpower.[18]Finding alternative sources of employment will continue to be a daunting problem for future governments, particularly with the increasing numbers of landless peasants who already account for about half the rural labor force.[18]Due to farmers' vulnerability to various risks, Bangladesh's poorest face numerous potential limitations on their ability to enhance agriculture production and their livelihoods. These include an actual and perceived risk to investing in new agricultural technologies and activities (despite their potential to increase income), a vulnerability to shocks and stresses and a limited ability to mitigate or cope with these and limited access to market information.[20]Manufacturing and industry[edit]

A Danish ferry built in a Bangladeshi shipyard. The country has a rapidly growing shipbuilding industryMany 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.[18]By the late 1990s, about 1.5 million people, mostly women, were employed in the garments sector as well as Leather products specially Footwear (Shoe manufacturing unit). 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 and in 2014 the export rose to $3.12 billion every month.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 premodern 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 thetextile industrybecame 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.[21]Other industries which have shown very strong growth include the pharmaceutical industry,[22]shipbuilding industry,[23]information technology,[24]leather industry,[25]steel industry,[26]electronics industry[27]and light engineering industry.[28][29]Apparel sector[edit]Main article:Bangladesh textile industry

A Bangladeshi textile fabric plantBangladesh's textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation's number one export earner, accounting for $21.5 billion in 2013 80% of Bangladesh's total exports of $27 billion.[30]Bangladesh is 2nd in world textile exports, behind China, which exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since 2004. Wages in Bangladesh's textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages were rapidly rising and currency was appreciating.[31][32]As of 2012 wages remained low for the 3 million people employed in the industry, but labor unrest was increasing despite vigorous government action to enforce labor peace. Owners of textile firms and their political allies were a powerful political influence in Bangladesh.[33]

Aready-made garmentsfactoryThe urban garment industry has created more than one million formal sector jobs for women, contributing to the high female labor participation in Bangladesh.[34]While it can be argued that women working in the garment industry are subjected to unsafe labor conditions and low wages, Dina M. Siddiqi argues that even though conditions in Bangladesh garment factories are by no means ideal," they still give women in Bangladesh the opportunity to earn their own wages.[35]As evidence she points to the fear created by the passage of the 1993 Harkins Bill (Child Labor Deterrence Bill), which caused factory owners to dismiss an estimated 50,000 children, many of whom helped support their families, forcing them into a completely unregulated informal sector, in lower-paying and much less secure occupations such as brick-breaking, domestic service and rickshaw pulling.[36]Even though the working conditions in garment factories are not ideal, they tend to financially be more reliable than other occupations and, enhance womens economic capabilities to spend, save and invest their incomes."[37]Both married and unmarried women send money back to their families as remittances, but these earned wages have more than just economic benefits. Many women in the garment industry are marrying later, have lower fertility rates, and attain higher levels of education, then women employed elsewhere.[38]After massive labor unrest in 2006[39]the government formed a Minimum Wage Board including business and worker representatives which in 2006 set a minimum wage equivalent to 1,662.50taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving 100,000 workers in June, 2010,[40][41]a controversial proposal was being considered by the Board which would raise the monthly minimum to the equivalent of $50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile manufacturers who are asking for a wage below $30.[32][42]On July 28, 2010 it was announced that the minimum entry level wage would be increased to 3,000 taka, about $43.[43]The government also seems to believe some change is necessary. On September 21, 2006 then ex-Prime MinisterKhaleda Ziacalled on textile firms to ensure the safety of workers by complying with international labor law at a speech inaugurating the Bangladesh Apparel & Textile Exposition (BATEXPO).Shipbuilding and ship breaking[edit]Main article:Shipbuilding in BangladeshShipbuildingis a growing industry in Bangladesh with great potentials.[44][45]The potentials of shipbuilding in Bangladesh has made the country to be compared with countries likeChina,JapanandSouth Korea.[46]Referring to the growing amount of export deals secured by the shipbuilding companies as well as the low cost labor available in the country, experts suggest that Bangladesh could emerge as a major competitor in the global market of small to medium ocean-going vessels.[47]Bangladesh also has the world's largestship breakingindustry which employs over 200,000 Bangladeshis and accounts for half of all the steel in Bangladesh.[48]Chittagong Ship Breaking Yardis world's second-largest ship breaking area.Investment[edit]

Headquarters ofGrameenphone, the country's largest telecoms operator.The stockmarket capitalizationof theDhaka Stock Exchangein Bangladesh crossed $10 billion in November 2007 and the $30 billion mark in 2009, and USD 50 billion in August 2010.[49]Bangladesh had the best performing stock market in Asia during the recent global recession between 2007 and 2010, due to relatively low correlations with developed country stock markets.[50]Major investment in real estate by domestic and foreign-resident Bangladeshis has led to a massive building boom in Dhaka and Chittagong.Recent (2011) trends for investing in Bangladesh as Saudi Arabia trying to secure public and private investment in oil and gas, power and transportation projects, United Arab Emirates (UAE) is keen to invest in growing shipbuilding industry in Bangladesh encouraged by comparative cost advantage, Tata, an India-based leading industrial multinational to invest Taka 1500 crore to set up an automobile industry in Bangladesh, World Bank to invest in rural roads improving quality of live, the Rwandan entrepreneurs are keen to invest in Bangladesh's pharmaceuticals sector considering its potentiality in international market, Samsung sought to lease 500 industrial plots from the export zones authority to set up an electronics hub in Bangladesh with an investment of US$1.25 billion, National Board of Revenue (NBR) is set to withdraw tax rebate facilities on investment in the capital market by individual taxpayers from the fiscal 2011-12.[51]In 2011,Japan Bank for International Cooperationranked Bangladesh as the 15th best investment destination for foreign investors.[52]2010-11 market crash[edit]Main article:2011 Bangladesh share market scamThe bullish capital market turned bearish during 2010, with the exchange losing 1,800 points between December 2010 and January 2011.[53]Millions of investors have been rendered bankrupt as a result of the market crash. The crash is believed to be caused artificially to benefit a handful of players at the expense of the big players.[53]External trade[edit]The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has predicted textile exports will rise from US$7.90 billion earned in 2005-06 to US$15 billion by 2011. In part this optimism stems from how well the sector has fared since the end of textile and clothing quotas, under the Multifibre Agreement, in early 2005.According to aUnited Nations Development Programmereport "Sewing Thoughts: How to Realize Human Development Gains in the Post-Quota World" Bangladesh has been able to offset a decline in European sales by cultivating new markets in the United States.[54]"[In 2005] we had tremendous growth. The quota-free textile regime has proved to be a big boost for our factories," said BGMEA president S.M. Fazlul Hoque told reporters, after the sector's 24 per cent growth rate was revealed.[55]The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Md Fazlul Hoque has also struck an optimistic tone. In an interview with United News Bangladesh he lauded the blistering growth rate, saying "The quality of our products and its competitiveness in terms of prices helped the sector achieve such... tremendous success."Knitwear posted the strongest growth of all textile products in 2005-06, surging 35.38 per cent to US$2.82 billion. On the downside however, the sector's strong growth came amid sharp falls in prices for textile products on the world market, with growth subsequently dependent upon large increases in volume.Bangladesh's quest to boost the quantity of textile trade was also helped by US and EU caps on Chinese textiles. The US cap restricts growth in imports of Chinese textiles to 12.5 per cent next year and between 15 and 16 per cent in 2008. The EU deal similarly manages import growth until 2008.Bangladesh may continue to benefit from these restrictions over the next two years, however a climate of falling global textile prices forces wage rates the centre of the nation's efforts to increase market share.They offer a range of incentives to potential investors including 10-year tax holidays, duty-free import of capital goods, raw materials and building materials, exemptions on income tax on salaries paid to foreign nationals for three years and dividend tax exemptions for the period of the tax holiday.All goods produced in the zones are able to be exported duty-free, in addition to which Bangladesh benefits from the Generalised System of Preferences in US, European and Japanese markets and is also endowed with Most Favoured Nation status from the United States.Furthermore, Bangladesh imposes no ceiling on investment in the EPZs and allows full repatriation of profits.The formation of labour unions within the EPZs is prohibited as are strikes.[56]

ASquare Pharmaceuticalsplant inGazipur.Bangladesh's pharmaceuticals industryexports to over 50 countriesBangladesh has been a world leader in its efforts to end the use of child labor in garment factories. On July 4, 1995, the Bangladesh Garment Manufacturers and Exporters Association,International Labour Organization, andUNICEFsigned a memorandum of understanding on the elimination of child labor in the garment sector. Implementation of this pioneering agreement began in fall 1995, and by the end of 1999, child labor in the garment trade virtually had been eliminated.[57]The labor-intensive process of ship breaking for scrap has developed to the point where it now meets most of Bangladesh's domesticsteelneeds. Other industries includesugar, tea, leather goods,newsprint, pharmaceutical, andfertilizerproduction.The Bangladesh government continues to court foreign investment, something it has done fairly successfully in private power generation and gas exploration and production, as well as in other sectors such as cellular telephony, textiles, and pharmaceuticals. In 1989, the same year it signed a bilateral investment treaty with the United States, it established a Board of Investment to simplify approval and start-up procedures for foreign investors, although in practice the board has done little to increase investment. The government created theBangladesh Export Processing Zone Authorityto manage the various export processing zones. The agency currently manages EPZs in Adamjee,Chittagong,Comilla,Dhaka, Ishwardi, Karnaphuli,Mongla, andUttara. An EPZ has also been proposed forSylhet.[58]The government has given the private sector permission to build and operate competing EPZs-initial construction on aKoreanEPZ started in 1999. In June 1999, theAFL-CIOpetitioned the U.S. Government to deny Bangladesh access to U.S. markets under theGeneralized System of Preferences(GSP), citing the country's failure to meet promises made in 1992 to allow freedom of association in EPZs.Bangladeshi women and the economy[edit]Bangladesh is a highly patriarchal society (as are many countries in the region) with gender being a key factor in defining social roles, responsibilities and power relationships within the family and workplace.[59]Male workforce participation is significantly higher than female participation, with men participating at 83 percent and women at 59 percent; however, male workforce participation has decreased by 4 percent, while female participation has increased by 4 percent from the year 2000.[60]It should be noted that a 59 percent female participation rate is high in comparison to a lot of countries like Iran, which has a 16.5 female labor participation rate (World Bank 2010), and Lebanon, which has a 22.5 female labor participation rate.[61]A 2007 World Bank report stated that the areas in which womens work force participation have increased the most are in the fields of agriculture, education and health and social work.[61]Over three-quarters of women in the labor force work in the agricultural sector. On the other hand, the International Labour Organization reports that women's workforce participation has only increased in the professional and administrative areas between 2000 and 2005, demonstrating women's increased participation in sectors that require higher education. Employment and labor force participation data from the World Bank, the UN, and the ILO vary and often under report on women's work due to unpaid labor and informal sector jobs.[62]Though these fields are mostly paid, women experience very different work conditions than men, including wage differences and work benefits. Womens wages are significantly lower than mens wages for the same job with women being paid as much as 60-75 percent less than what men make.[63]One example of action that is being taken to improve female conditions in the work force is Non-Governmental Organizations. These NGOs encourage women to rely on their own self-savings, rather than external funds provide women with increased decision-making and participation within the family and society.[64]However, some NGOs that address microeconomic issues among individual families fail to deal with broader macroeconomic issues that prevent women's complete autonomy and advancement.[64]Overview[edit] Karwan Bazar is home to many of Bangladesh's important offices Bazaarsin Bangladesh are popular trading places for everyday household necessities. Bashundhara Cityis one of the most luxurious shopping mall in Asia.Bangladesh has made significant strides in its economic sector performance since independence in 1971. Although the economy has improved vastly in the 1990s, Bangladesh still suffers in the area of foreign trade inSouth Asianregion. Despite major impediments to growth like the inefficiency ofstate-owned enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, inadequate power supplies,[65]and slow implementation of economic reforms, Bangladesh has made some headway improving the climate forforeign investorsand liberalizing thecapital markets; for example, it has negotiated with foreign firms for oil and gas exploration, better countrywide distribution of cooking gas, and the construction ofnatural gaspipelinesandpower stations. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups.The especially severe floods of 1998 increased the flow ofinternational aid. So far the global financial crisis has not had a major impact on the economy.[66]Foreign aid has seen a gradual decline over the last few decades but economists see this as a good sign for self-reliance.[67]There has been a dramatic growth in exports and remittance inflow which has helped the economy to expand at a steady rate.[68][69]Fiscal YearTotal ExportTotal ImportForeign Remittance Earnings

20072008$14.11b$25.205b$8.9b

20082009$15.56b$22.00b+$9.68b

20092010$16.7b~$24b$10.87b

20102011$22.93b$32b$11.65b

20112012$24.30b$35.92b$12.85b

20132014$30.10b$29.37b$14.00b

Page last updated on June 23, 2014Economy - overview:Bangladesh's economy has grown roughly 6% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, slow implementation of economic reforms, and the 2008-09 global financial crisis and recession. Although more than half of GDP is generated through the service sector, almost half of Bangladeshis are employed in the agriculture sector with rice as the single-most-important product. Garment exports, the backbone of Bangladesh?"s industrial sector and 80% of total exports, surpassed $21 billion last year, 18% of GDP. The sector has remained resilient in recent years amidst a series of factory accidents that have killed over 1,000 workers and crippling strikes that shut down virtually all economic activity. Steady garment export growth combined with remittances from overseas Bangladeshis, which totaled almost $15 billion and 13% of GDP IN 2013, are the largest contributors to Bangladesh?"s current account surplus and record foreign exchange holdings.GDP(purchasing power parity):$324.6 billion (2013 est.)country comparison to the world: 44$307 billion (2012 est.)$289.2 billion (2011 est.)note:data are in 2013 US dollars[see also:GDP country ranks]GDP (official exchange rate):$140.2 billion (2013 est.)[see also:GDP (official exchange rate) country ranks]GDP - real growth rate:5.8% (2013 est.)country comparison to the world: 426.1% (2012 est.)6.5% (2011 est.)[see also:GDP - real growth rate country ranks]GDP - per capita:$2,100 (2013 est.)country comparison to the world: 194$2,000 (2012 est.)$1,900 (2011 est.)note:data are in 2013 US dollars[see also:GDP - per capita country ranks]Gross national saving:28.3% of GDP (2013 est.)country comparison to the world: 3427% of GDP (2012 est.)25% of GDP (2011 est.)[see also:Gross national saving country ranks]GDP - composition, by end use:household consumption:75.3%government consumption:5.7%investment in fixed capital:25.6%investment in inventories:3.6%exports of goods and services:24.5%imports of goods and services:-34.7%(2013 est.)GDP - composition, by sector of origin:agriculture:17.2%industry:28.9%services:53.9% (2013 est.)Agriculture - products:rice, jute, tea, wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit; beef, milk, poultryIndustries:jute, cotton, garments, paper, leather, fertilizer, iron and steel, cement, petroleum products, tobacco, pharmaceuticals, ceramics, tea, salt, sugar, edible oils, soap and detergent, fabricated metal products, electricity, natural gasIndustrial production growth rate:9% (2013 est.)country comparison to the world: 20[see also:Industrial production growth rate country ranks]Labor force:78.62 millioncountry comparison to the world: 7note:extensive export of labor to Saudi Arabia, Kuwait, UAE, Oman, Qatar, and Malaysia; workers' remittances were $10.9 billion in FY09/10 (2013 est.)[see also:Labor force country ranks]Labor force - by occupation:agriculture:47%industry:13%services:40% (2010 est.)Unemployment rate:5% (2013 est.)country comparison to the world: 485% (2012 est.)note:about 40% of the population is underemployed; many persons counted as employed work only a few hours a week and at low wages[see also:Unemployment rate country ranks]Population below poverty line:31.5% (2010 est.)[see also:Population below poverty line country ranks]Household income or consumption by percentage share:lowest 10%:4%highest 10%:27% (2010 est.)Distribution of family income - Gini index:32.1 (2010)country comparison to the world: 10633.6 (1996)[see also:Distribution of family income - Gini index country ranks]Budget:revenues:$17.19 billionexpenditures:$24.02 billion (2013 est.)Taxes and other revenues:12.3% of GDP (2013 est.)country comparison to the world: 203[see also:Taxes and other revenues country ranks]Budget surplus (+) or deficit (-):-4.9% of GDP (2013 est.)country comparison to the world: 164[see also:Budget surplus (+) or deficit (-) country ranks]Public debt:30.9% of GDP (2013 est.)country comparison to the world: 11832.2% of GDP (2012 est.)[see also:Public debt country ranks]Fiscal year:1 July - 30 JuneInflation rate (consumer prices):7.6% (2013 est.)country comparison to the world: 1916.6% (2012 est.)[see also:Inflation rate (consumer prices) country ranks]Central bank discount rate:5% (31 December 2010 est.)country comparison to the world: 695% (31 December 2009 est.)[see also:Central bank discount rate country ranks]Commercial bank prime lending rate:13% (31 December 2013 est.)country comparison to the world: 5813% (31 December 2012 est.)[see also:Commercial bank prime lending rate country ranks]Stock of narrow money:$17.11 billion (31 December 2013 est.)country comparison to the world: 67$14.85 billion (31 December 2012 est.)[see also:Stock of narrow money country ranks]Stock of broad money:$85.61 billion (31 December 2013 est.)country comparison to the world: 58$70.87 billion (31 December 2012 est.)[see also:Stock of broad money country ranks]Stock of domestic credit:$93.38 billion (31 December 2013 est.)country comparison to the world: 53$79.32 billion (31 December 2012 est.)[see also:Stock of domestic credit country ranks]Market value of publicly traded shares:$NA (February 2014 est.)country comparison to the world: 60$17.48 billion (31 December 2012)$23.55 billion (31 December 2011 est.)[see also:Market value of publicly traded shares country ranks]Current account balance:$3.541 billion (2013 est.)country comparison to the world: 32$1.754 billion (2012 est.)[see also:Current account balance country ranks]Exports:$26.91 billion (2013 est.)country comparison to the world: 68$24.92 billion (2012 est.)[see also:Exports country ranks]Exports - commodities:garments, knitwear, agricultural products, frozen food (fish and seafood), jute and jute goods, leatherExports - partners:US 18.7%, Germany 15.8%, UK 10.2%, France 6.2%, Spain 4.6%, Canada 4.3%, Italy 4% (2013 est.)Imports:$32.94 billion (2013 est.)country comparison to the world: 64$32.29 billion (2012 est.)[see also:Imports country ranks]Imports - commodities:machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cementImports - partners:China 21.7%, India 16.3%, Malaysia 5.2%, Republic of Korea 4.5%, Japan 4.1% (2013 est.)Reserves of foreign exchange and gold:$15.74 billion (31 December 2013 est.)country comparison to the world: 68$12.75 billion (31 December 2012 est.)[see also:Reserves of foreign exchange and gold country ranks]Debt - external:$30.69 billion (31 December 2013 est.)country comparison to the world: 72$29.53 billion (31 December 2012 est.)[see also:Debt - external country ranks]Stock of direct foreign investment - at home:$7.04 billion (31 December 2013 est.)country comparison to the world: 88$6.64 billion (31 December 2012 est.)[see also:Stock of direct foreign investment - at home country ranks]Stock of direct foreign investment - abroad:$110.1 million (31 December 2013 est.)country comparison to the world: 85$108.1 million (31 December 2012 est.)[see also:Stock of direct foreign investment - abroad country ranks]Exchange rates:taka (BDT) per US dollar -78.19 (2013 est.)81.863 (2012 est.)69.649 (2010 est.)69.04 (2009)68.554 (2008)

Bangladesh Overview CONTEXT STRATEGY RESULTSBangladesh has maintained an impressive track record on growth and development.In the past decade, the economy has grown at nearly 6 percent per year, and human development went hand-in-hand with economic growth. Poverty dropped by nearly a third,coupled with increased life expectancy, literacy, and per capita food intake. More than 15 million Bangladeshis have moved out of poverty since 1992.While poverty reduction in both urban and rural areas has been remarkable, the absolute number of people living below the poverty line remains significant.Despite the strong track record, around 47 million people are still below the poverty line, and improving access to quality services for this vulnerable group is a priority. There are also many people who could fall back into poverty if they lose their jobs or are affected by natural disasters.With nearly 150 million inhabitants on a landmass of 147,570 square kilometers, Bangladesh is among the most densely populated countries in the world.Sustained growth in recent years has generated higher demand for electricity, transport, and telecommunication services, and contributed to widening infrastructure deficits. While the population growth rate has declined, the labor force is growing rapidly. This can be turned into a significant demographic dividend in the coming years, if more and better jobs can be created for the growing number of job-seekers. Moreover, improving labor force participation and productivity will help to release the potential of the economy. Exploiting the potential of regional cooperation and making trade policy more conducive to a deepening and diversification of exports will also play a vital role in the growth process.Bangladesh aspires to be a middle-income country by 2021.This will require increasing GDP growth to 7.5 to 8 percent per year based on accelerated export and remittance growth. Both public and private investment will need to increase as well. Growth will also need to be more inclusive through creation of productive employment opportunities in the domestic economy. To sustain accelerated and inclusive growth, Bangladesh will need to manage the urbanization process more effectively, as well as prepare for adaptation to climate change impacts.Becoming a middle-income country will require substantial efforts on many fronts. These include maintaining macroeconomic stability; strengthening revenue mobilization; tackling energy and infrastructure deficits; deepening financial-sector and external trade reforms; improving labor skills, economic governance, and urban management; and adapting to climate change. Bangladesh can become an export powerhouse, with its labor-intensive manufactured and service exports growing at double digits on a sustained basis, if it speeds up government decision-making. Without timely action, other countries (such as Vietnam and Myanmar) will take the markets being vacated by China.

he Vision 2021 and Sixth Five-Year Plan have set solid development targets for Bangladesh. Recognizing that development is a long-term process, the Five-Year Plan is cast in the context of a long-term development vision defined by the governments Vision 2021 and the Perspective Plan (2010-2021).Those targets, if achieved, will transform the socioeconomic environment. Along with higher per capita income, the governments Vision 2021 presents a development scenario where citizens will have a higher standard of living, be better-educated, face better social justice, and have a more equitable socioeconomic environment, and the sustainability of development will be ensured through better protection from climate change and natural disasters.IDA commitments to Bangladesh have grown rapidly in the past five years, topping $1 billion for the first time in FY 2009.The current IDA portfolio consists of 32 projects, with a total commitment of $7.5 billion.The World Banks Country Assistance Strategy for FY11-14 is supporting the governments vision of rapid poverty reduction through accelerated, sustainable, and inclusive growth, underpinned by stronger governance at central and local levels.To ensure better outcomes, the World Banks strategy seeks to scale up ongoing operationswith demonstrable results, engage in strategic interventions with a transformative impact, and innovate through small pilots with high country ownership.Key areas of intervention are:Accelerated Growth: Infrastructure investment and a more conducive business environment are needed to sustain and increase recent levels of private sector growth. The World Bank Group will support reforms to strengthen sector governance, financial sustainability, and private-sector participation in infrastructure provision and maintenance. It will also support efforts to enhance regional cooperation as a means to accelerate exports and increase foreign direct investment.Sustainable Growth: Bangladesh is among the most densely populated countries in the world, already vulnerable to natural disasters and increasingly affected by climate change. Water resource management, agricultural adaptation, environmental protection, and disaster preparedness will be critical areas for intervention.Inclusive Growth: With around 47 million people below the poverty line, improving social service delivery is a priority. The Bank plans to provide second-generation support for sector-wide approaches with other partners in primary education and health, population, and nutrition services, as well as expand support for targeted social assistance.Stronger Governance: Bangladesh has made gradual progress in many areas of governance in the past five to 10 years. The International Finance Corporation will focus on governance issues related to the private sector (such as how to strengthen the investment climate), while IDA will focus on decentralized service delivery, strengthening social accountability, and supporting transparency through the Right to

The International Development Association (IDA) has been supporting Bangladesh since 1972, just after the countrys independence. Since then,IDA has provided more than $19 billion support to advance Bangladeshs development priorities.The World Bank support has helped Bangladesh to reduce poverty and improve human development. Key elements of that support have been the Banks long-term commitment to health and education, its support for rural infrastructure, and its engagement in policy dialogues that have created conditions for broad-based economic growth. IDAs support has also included a substantial body of analytical work and knowledge products that have contributed to the policy debate, IDA-supported operations, and, ultimately, development outcomes. Forty years of partnership have built a solid foundation for improvements in growth, empowerment, and social mobility.Highlights of IDAs engagement in Bangladesh include: Rural Infrastructure:IDA has been a major partner in the development of Bangladesh's rural infrastructure, having funded three rural road improvement projects. A recently completedrural road projecthas helped to improve and maintain more than 2,500 km of rural roads in 21 districts. These roads have improved access to schools and health clinics, reduced transport costs, and helped increase rural non-farm incomes. They also led to the creation of over 47,000 person-years of employment in the project area, with female employment increasing by 50 percent. The overall poverty effect of road improvement was significant, with poverty falling by about 1% and the poverty reduction rate almost doubling in project areas. Agriculture: Bangladesh has made impressive achievements over the last 30 years in narrowing the gap between food crop production and the needs of the population, in large part due to expansion of irrigation. The country is nearly self-sufficient in rice (the main staple food) with production reaching more than 35 million metric tons per year. IDA is an active partner in the agriculture sector in Bangladesh, focusing support ontechnology and researchand on rehabilitation of infrastructure forflood control, irrigation and drainage. Bangladesh is one of the first countries to receive a grant from the Global Agriculture and Food Security Program, with project results focused on enhancingagricultural productivity and livelihoodsin two of the most agro-ecologically constrained areas of the country. Energy: Bangladesh suffers from shortages of reliable electricity and natural gas service compared to demand. Total installed capacity is 8,050 MW, and IDA has contributed to more than 1,515 MW of that capacity, with another 335 MW under construction. IDA has supportedpublic-private partnerships to build small power plantsas well as large-scale independent power plants, such as the Haripur and the Meghnaghat plants. In addition, access to electricity is being provided in rural areas through off-grid technologies, and consumption of energy is being reduced through distribution of energy-efficient CFLs with IDA support. For example, more than 850,000solar home systemshave been installed through May 2012 in remote villages, and every month about 50,000 new homes and shops in rural areas are being connected toelectricity through the installation of these systems. Education: Bangladesh has made impressive gains in improving access to education, reaching the Millennium Development Goal of gender parity at school enrollment well ahead of time. Today, the female primary school enrollment rate of 98% in Bangladesh is higher than those in Pakistan, Nepal and Bhutan and about the same as in India. Six million girls attend secondary school in Bangladesh today, rising from just 1 million two decades ago. IDA has contributed to these achievements by supporting both formal and informal education service delivery programs, including innovative models to improve performance and involve difficult-to-reach groups. Currently, IDA supports active projects in theprimary,secondary, andtertiarysectors, including an initiative tobring out-of-school children back to schooland askill-buildingproject to help develop a more competitive labor force. Health: IDA has been a close partner of the government of Bangladesh to improve health, HIV and nutrition outcomes since 1975. The World Bank currently supports implementation of the governmentsHealth, Nutrition, and Population Sector Development Programin partnership with other development partners to strengthen health systems and improve health services, particularly for the poor. With World Bank support, assisted deliveries have helped reduce maternal mortality rates by 40% in the past decade. Today, nearly 90% of Bangladeshi children receive vitamin A supplements and more than 80% are vaccinated, contributing to an impressive reduction in infant and child mortality by more than two-thirds since 1990. The country is on track to meet the Millennium Development Goal targets for health, and received the 2010 United Nations Award for MDG 4 achievements. Nutrition, however, remains a challenge, as more than 40% of under-5 children are either moderately underweight or moderately stunted or both. Livelihoods:IDA has been supportingcommunity-driven developmentplans aimed at improving livelihoods; quality of life; and resilience to climate variability, natural hazards, and other shocks for the rural poor. Around3.5 million peoplein about 1,000 villages have benefited from improvements in community infrastructure, such as access to drinking water; roads and bridges; and credit, markets, and opportunities for income generation. Local governance:With IDA support, all 4,504Union Parishadsof Bangladesh have been provided with increased resources and delegated responsibility to deliver local services. For the first time, female Union Parishad members are managing 30% of the funds and plans. More than 35,000 community plans generating employment for poor people have been implemented so far, including construction or rehabilitation of roads, culverts, drainage and embankment systems; water and sanitation facilities; and schools and clinics. Current program innovations includeperformance-based grants to expand resources available to local governments. Water supply and sanitation:In partnership with the government, IDA has contributed to providing access to safe and arsenic/pathogen-freewater and improved sanitationservices to 1.25 million people in rural areas and small towns. IDA is also supporting improvements in water supply and sanitation in Dhaka and Chittagong, two of the largest cities in the country.