The economy of Bangladesh

1. Name: Shuva Chakma (苏卫)
Student id: 2214010022
Major: International Trade And Economy

2. Bangladesh National
Economy: A Comprehensive
Overview

3. Introduction
• Bangladesh is a country with a vibrant culture,
historical significance, and a promising future.
• The economy of Bangladesh has been growing
steadily in recent years, with key sectors
including agriculture, garment manufacturing,
textiles, and services. The country has made
significant progress in poverty reduction and
human development indicators.

4. • Location: Bangladesh is located in South Asia and shares
borders with India and Myanmar.
• Population: With a population of over 160 million people,
Bangladesh is the eighth most populous country in the world.
• Area: It covers an area of approximately 147,570 square
kilometers (56,977 square miles).
• Independence: Bangladesh gained independence from Pakistan
in 1971 after a nine-month liberation war.
• Natural Beauty: The country is known for its natural beauty,
including the Sundarbans, the world's largest mangrove forest,
and Cox's Bazar, the longest natural beach in the world.
• Microfinance: Bangladesh is famous for pioneering the concept
of microfinance through institutions like Grameen Bank, which
provides small loans to empower rural entrepreneurs.
Overview of Bangladesh

5. Historical Background
Structural Adjustment and Liberalization
(1990-2000): In the 1990s, Bangladesh
implemented structural adjustment
programs recommended by international
financial institutions. These measures
aimed to liberalize markets, deregulate
industries, and promote private
investment and exports. The country also
focused on improving governance and
reducing corruption.

6. Economic Sectors
Agriculture and fisheries
Manufacturing and textiles
Services and IT industry

7. Agriculture and Fisheries
• Agriculture is the largest sector in
terms of employment, with nearly
half of the population engaged in
farming.
• The primary crops cultivated in
Bangladesh include rice, jute,
wheat, maize, pulses, and
vegetables.
• Bangladesh has a vast network of
rivers, lakes, and water bodies,
offering excellent potential for
inland fisheries. Fish farming,
commonly known as pisciculture, is
a significant contributor to the
country's fish production.

8. Manufacturing and Textiles
• The textile sector is one of the largest
industries in Bangladesh, accounting for a
major share of the country's exports.
• Bangladesh is known for its ready-made
garment (RMG) industry, which produces
clothing for both domestic and international
markets.
• Bangladesh has emerged as a major player
in the global textile and apparel market.
• Bangladesh has emerged as a major player
in the global textile and apparel market.

9. Top Fashion Brands Importing
From Bangladesh
Top Fashion Brand’s Importing From
Bangladesh Bangladesh

10. Services and IT Industry
• The IT industry in Bangladesh is expanding, with an
increasing number of companies specializing in
software development, IT consulting, and
outsourcing services.
• The software development sector is a significant
part of the IT industry in Bangladesh.
• The e-commerce industry has seen remarkable
growth in Bangladesh in recent years.
• The development of the services and IT industry in
Bangladesh has been supported by a significant
expansion in the telecommunications sector.

11. GDP and Growth Rate
• The GDP of Bangladesh has been steadily increasing
over the years. As of the most recent available data,
the GDP of Bangladesh was approximately $375
billion in 2020. However, please note that these
figures are subject to change as new data becomes
available.
• Bangladesh has also been experiencing notable
economic growth. In recent years, the annual GDP
growth rate has averaged around 6-8%. This growth
can be attributed to various factors such as robust
domestic demand, increased industrial activities,
expansion of the services sector, and a growing
export-oriented economy.
• The government of Bangladesh has implemented
various policies and initiatives to promote economic
growth and attract investment.

12. Poverty and Inequality
• The proportion of people living in extreme poverty
(those with daily incomes below the international
poverty line of $1.90) has also significantly
decreased. In 2020, it was estimated that around
9.2% of the population lived in extreme poverty,
compared to more than 40% in the early 1990s.
• There is a noticeable disparity between rural and
urban areas in terms of poverty rates and access to
resources.
• Rural areas, where the majority of the population
resides, tend to have higher poverty rates and
limited access to education, healthcare, and
infrastructure compared to urban areas.

14. Foreign Direct Investment (FDI)
• Bangladesh has experienced a rise in FDI inflows in recent
years. According to the World Bank, FDI inflows to
Bangladesh reached $3.6 billion in 2020, despite the
challenges posed by the COVID-19 pandemic.
• FDI in Bangladesh is primarily concentrated in sectors such
as textiles and garments, telecommunications, power and
energy, ready-made garments, pharmaceuticals, banking,
and services.
• The government of Bangladesh has taken several initiatives
to promote FDI and create an enabling environment for
foreign investors. These include policy reforms, tax
incentives, simplified procedures for investment,
infrastructure development, and the establishment of
special economic zones (SEZs).

16. Trade and Export
• Trade and export play a vital role in the
economic growth of Bangladesh.
• Bangladesh has transformed into an export-
oriented economy, with a significant portion of
its GDP dependent on exports. The country
primarily focuses on ready-made garments
(RMG), textiles, jute and jute goods, leather
products, pharmaceuticals, ceramics, and
frozen foods.
• Bangladesh exports its products to various
countries around the world. The top export
destinations include the United States,
Germany, the United Kingdom, France, Spain,
Italy, the Netherlands, Canada, Japan, and
Australia.

18. Infrastructure Development
• The government has prioritized
improving transportation infrastructure,
including roads, highways, bridges, and
railways.
• Bangladesh has invested in expanding
and modernizing its seaports to facilitate
international trade. The major ports
include Chittagong Port and Mongla Port.
• Bangladesh has made significant
progress in power and energy
infrastructure development. The
government has focused on increasing
electricity generation capacity, both
through conventional and renewable
energy sources.

19. Human Resources and Labor Market

20. This is the
flow chart
of Human
Resources
of
Bangladesh

21. Investment Opportunities
• The RMG industry is one of the key sectors in
Bangladesh, contributing significantly to the country's
export earnings. There are opportunities for
investment in textile manufacturing units, garment
factories, and supply chain management.
• The IT and BPO sector in Bangladesh has been
growing rapidly, fueled by a young and tech-savvy
workforce. Investments in software development,
outsourcing services, and IT infrastructure can tap into
this expanding market.
• With a large population and increasing demand for
healthcare services, the pharmaceutical sector offers
investment opportunities. Investments in drug
manufacturing, medical devices, healthcare facilities,
and telemedicine services have good potential.

22. Bangladesh and China Economic Relation
• Trade between Bangladesh and China has been
steadily increasing in recent years. China is one of
Bangladesh's largest trading partners, and bilateral
trade volumes have been on the rise. Main traded
goods include textiles, machinery, electronics, raw
materials, and consumer products.
• According to the Chinese embassy, Bangladesh
exported goods worth over $1 billion to China in
2019. Of them, textiles, clothing and accessories
accounted for $590 million or about 57% of the
total exports to China
• During the last 26 years the exports of Bangladesh
to China have increased at an annualized rate of
11.8%, from $55.1M in 1995 to $1.01B in 2021. In
2021, China exported $24.1B to Bangladesh.

23. Financial Sector
• The banking sector in Bangladesh is dominated by
commercial banks, both national and multinational. These
banks offer a range of services, including deposit accounts,
loans, trade financing, remittance services, and digital
banking solutions. The Bangladesh Bank, the central bank
of the country, regulates and supervises the banking
industry.
• Capital market:The primary issues and secondary trading of
equity securities of capital market take place through two
(02) stock exchanges-Dhaka Stock Exchange and Chittagong
Stock Exchange. The instruments in these exchanges are
equity securities (shares), debentures and corporate bonds.
• The financial sector in Bangladesh operates under a
comprehensive regulatory framework set by various
regulatory bodies.

25. Conclusion
• Bangladesh's national economy has shown
remarkable growth and transformation in recent
years. Key factors contributing to this growth
include the textile and garment industry,
agriculture, initiatives, trade and export, Foreign
Direct Investment (FDI) and infrastructure
development. However, the country still faces
challenges such as poverty, inequality, corruption,
and environmental sustainability.
• Continued focus on addressing these challenges,
investing in human capital, promoting innovation,
and diversifying the economy will be crucial for
sustaining and furthering Bangladesh's economic
growth in the future.

26. Thank you
谢谢！