Bangladesh, a country of more than 168.9 million people.is one of south Asia’s least developed countries. Bangladesh achieved good economic progress during the 1990s by adopting a series of structural & economic return measures. Bangladesh has the 34th largest economy in the world in terms of GNP based on the purchasing power parity method of valuation. consumption is on of the major components of national out put. Naturally, Nations wants high levels of consumption-items such as housing food. education. and recreation. The Purpose of the economy is after all.to transform inputs like labor and capital into consumption

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WEL COME TO
OUR
PRESENTATION

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The consumption
of
Bangladesh

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Group partner Name & ID
NAME ID
Md. Hafizur Rahman 5447
Sabiha Sultana 5502
Md. Kauser Ahamed 5513
Nusrat Jahan 5497
Dewan Shahibur Rahman 1923

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Bangladesh, a country of more than 168.9 million people.is
one of south Asia’s least developed countries. Bangladesh
achieved good economic progress during the 1990s by
adopting a series of structural & economic return measures.
Bangladesh has the 34th
largest economy in the world in terms
of GNP based on the purchasing power parity method of
valuation. consumption is on of the major components of
national out put. Naturally, Nations wants high levels of
consumption-items such as housing food. education. and
recreation. The Purpose of the economy is after all.to
transform inputs like labor and capital into consumption
Introduction :

5. What is consumption :
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The process in which the substance of a thing is
completely destroyed, used up,or incorporated or
transformed into something else .Consumption of
goods and services is the amount of them used in a
particular time period.

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Consumption is the expenditures by households on final
goods and services. In Macroeconomics, consumption is the
total spending by a nation on consumer goods and services
over a period of time. It is the largest single component of
GDP. Consumption is strictly applied only to those goods or
services that are used within the specified time period.
However in practice consumption expenditures include
all consumer goods bought, many of which last well beyond
the specified period e.g. automobiles, clothes, furniture, etc.
Major areas of consumption are housing, motor vehicles,
food, and medical care.

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The Consumption Function :
It shows the relationship between the level of
consumption expenditures and the level of
disposable personal income. This concept,
introduced by Keynes, is based on the
hypotheses that there is a stable empirical
relationship between consumption and income.
The graph below vividly describes the
consumption function

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Bangladesh GDP per capita :
The Gross Domestic Product per capita in Bangladesh
was last recorded at 972.88 US dollars in 2015. The
GDP per Capita in Bangladesh is equivalent to 8
percent of the world's average. GDP per capita in
Bangladesh averaged 478.42 USD from 1960 until
2015, reaching an all time high of 972.88 USD in 2015
and a record low of 317.79 USD in 1972. GDP per
capita in Bangladesh is reported by the World Bank

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Bangladesh GDP Growth Rate 1994-2016 Forecast
The Gross Domestic Product (GDP) in Bangladesh
expanded 6.51 percent in 2015 from the previous
year. GDP Growth Rate in Bangladesh averaged
5.66 percent from 1994 until 2015, reaching an all
time high of 6.63 percent in 2006 and a record low
of 4.08 percent in 1994. GDP Growth Rate in
Bangladesh is reported by the Bangladesh Bank.

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Bangladesh is considered as a developing economy. Yet,
almost one-third of Bangladesh’s 150m people live in
extreme poverty. In the last decade, the country has recorded
GDP growth rates above 5 percent due to development of
microcredit and garment industry. Although three fifths of
Bangladeshis are employed in the agriculture sector, three
quarters of exports revenues come from producing ready-
made garments. The biggest obstacles to sustainable
development in Bangladesh are overpopulation, poor
infrastructure, corruption, political instability and a slow
implementation of economic reforms.

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Bangladesh: Household consumption as percent of
GDP
For that indicator, The World Bank provides data for
Bangladesh from 1960 to 2014. The average value
for Bangladesh during that period was 82.54 percent
with a minimum of 72.62 percent in 2014 and
a maximum of 98.91 percent in 1976.

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Household consumption, percent of GDP
rankings around the world. Create and download
charts for Bangladesh Household consumption,
percent of GDP and other indicators with the country
comparator.

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Oil consumption
Oil consumption (Total petroleum consumption)
includes internal consumption, refinery fuel and loss,
and bunkering. Also included, where available, is direct
combustion of crude oil.

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Bangladesh Oil consumption, thousand barrels per day
For that indicator, The U.S. Energy Information
Administration provides data for Bangladesh from 1980
to 2013. The average value for Bangladesh during that
period was 61.26 thousand barrels per day with
a minimum of 30 thousand barrels per day in 1983 and
a maximum of 109 thousand barrels per day in 2013.

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The rate of consumption of oil is increasing day by day because
the numbers of vehicles increasing very rapidly at high rate

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Oil consumption rankings around the world. Create
and download charts for Bangladesh Oil consumption
and other indicators with the country comparator.

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Liquefied petroleum gas consumption:
Liquefied petroleum gases include ethane, ethylene,
propane, propylene, normal butane, butylene's,
isobutene, and isobutylene. The Liquefied Petroleum
Gases consumption also includes, where data are
available, liquefied petroleum gases sold directly from
natural gas processing plants for fuel or chemical uses
and pentanes plus.

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LPG consumption rankings around the
world. Create and download charts for
Bangladesh LPG consumption and other
indicators with the country comparator.

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Electricity consumption and GDP Growth
The supply of electricity has a great positive impact on
GDP and GDP is one of the key indicators to measure the
economy of a country. Power crisis is slowing the pace of
GDP growth rate. Therefore, it is to increase the GDP
growth rate, available supply of electricity should be
ensured. The economy of Bangladesh is mainly
depending upon agriculture, industrial, commercial and
other economic development. On the other hand, these
developments directly and indirectly depend upon the
fluent supply of electricity. A decreasing rate of
electricity generation has resulted in the lower GDP

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generation has resulted in the lower GDP growth (Figure 6).
The current GDP growth of 6.66 percent might be the result of
comparatively higher growth rate of electricity generation (6.19
percent). The average GDP between 2007 and 2011 was 6.22
percent whereas the average generation of electricity was 3748
MW. Under the business as usual scenario, if an arbitrary
calculation is made, it is observed that 603 MW generation of
electricity might be required for the growth of one percent GDP.
Therefore, it is difficult to achieve the target of seven percent
GDP growth with the current generation of electricity within
this fiscal year (2011-12).

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 From 1995-96 to 2004-2005, total consumption at market price
more than doubled in terms of taka. However in terms of dollar
the increase was only 0.33 times. In 1998-99, the market price of
total consumption increased by 9.9% in taka but 3.3% in dollar
value. Given below is the consumption trend in Bangladesh in
US dollars.
 However, the consumption-GDP has been decreasing, although
the rate of decline is slow. The decline is due to increase in
inflation, and greater tendency to save due to higher interest
rates. Given below is a graph illustrating the change in
consumption-GDP ratio from FY1993-94 to FY2005-06:

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Conclusion:
The analysis of consumption used to disregard the activities
of government until Keynes (1936) explained the importance
of “multiplier process” in generating desired outcome from a
fiscal shock. Since then consumption remained at the heart of
Keynesian analysis. A rise in government expenditure is
supposed to create increased income opportunities and
thereby raising “effective demand.” People with additional
income are supposed to consume more and thus boost
aggregate demand, according to the Keynesian view.
According to the proposition of Riparian equivalence,
households are assumed to have prefect foresight and
knowledge about the economy.

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The End