Bangladesh is a developing economy supported by the agricultural sector. Over the years, the economy has developed strongly in the industrial sector, especially in readymade garments. This garment industry has now become a significant contributor to the GDP of the country. Moreover, Bangladesh has also seen growth in industries involved in mining and quarrying of natural gas.

Major challenges like higher population, along with frequent natural calamities are influencing the overall development of the economy.

(Source: bangladesh-bank.org – PDF file, bangladesh.com, economywatch.com)

Gross Domestic Product (GDP)

In 2010, Bangladesh reported a GDP of BDT 6,923.80 billion (preliminary) at current market prices, a growth of 12.62% over 2009. Per capita GDP at current prices was BDT 47,405 in 2010.

(Source: Central Bank)

(Source: Central Bank, MOF– PDF file)

Gross National Income (GNI)

In 2010, GNI of the country was BDT 7,586.84 billion (preliminary) at current market prices, a growth of 13.12% over 2009. GNI per capita at purchasing power parity (PPP) in 2010 was USD 1,587.

(Source: Central Bank, UNDP (pg4)) 

(Source: Central Bank, MOF– PDF file)

 Income Tax Rate

The Government of Bangladesh levies a minimum tax of BDT 2,000 on all individual taxpayers. However, income tax is further charged on the basis of five income slabs varying from 10% to 25%. Any non-resident person, other than Non-Resident Bangladeshi, is liable to pay fixed tax at 25% of his/her income.

(Source: BOI)

*income slab is BDT 0-180,000 for female taxpayers and individuals of age 70 years and above

**income slab is BDT 180,001-440,000 for female taxpayers and individuals of age 70 years and above

 (Source: BOI)

Corporate Tax Rate

The Government levies a minimum tax of BDT 5,000 on all types of companies/businesses. Income tax varies from 25% to 45%, depending upon the level and type of company/business.

 (Source: BOI)

(Source: BOI)

Inflation Rate

In 2010, the inflation rate in the country increased to 7.3% from 6.7% in 2009. This rise was mainly due to an increase in food prices. In January 2011, monthly inflation further increased to 9.04%.

(Source: BBS – PDF file)

(Source: BBS – PDF file, PDF file)

Foreign Direct Investment (FDI)

In 2010, total FDI inflows of the country amounted to USD 913.02 million, a decrease of 4.95% from the previous year.

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

Central Bank Assets

As of June 30, 2010, total assets of the Bangladesh Bank (Central Bank) amounted to BDT 1,097,743.4 million.

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

 Non Performing Loan Ratio (NPLR)

In 2010 (till June), NPLR of all types of banks in the country was 8.7% of the total loans. NPLR was highest in the case of Development Financial Institutions (DFIs).

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

Consumer Price Index (CPI)

Annual CPI in 2010 was 221.53 points, a rise of 7.3% over previous year due to an increase in food prices. In January 2011, monthly CPI was reported to be at 242.48 points.

(Source: BBS – PDF file, PDF file)

Base year = 1995-96 = 100

(Source: BBS – PDF file, PDF file)

Interest Rate

In 2010, the central bank interest rate on deposits was 6.08% and on lending was 8.06%.

(Source: Central Bank)

(Source: Central Bank)

Money Supply

Bangladesh classifies its money supply into two types – M1 and M2, where

M1 includes:

•           Currency outside banks
•             Deposits of financial institutions with central bank, except Deposit Money Banks (DMBs)
•           Demand deposits with DMBs (excluding inter-bank and Government deposits)

 M2 includes M1 and time deposits with DMBs (excluding inter-bank and Government deposits).

 (Source: Central Bank)

(Source: Central Bank)

Government Expenditure

In 2010, total Government expenditure amounted to BDT 1,105.23 million.

(Source: MOF– PDF file,MOF– PDF file)

Official Exchange Rate

In January 2011, the average exchange rate United States Dollar (USD) was 71.04, against the Euro (EUR) was 94.92 and against the Great British Pound (GBP) was 112.02.

(Source: Central Bank – PDF file)

Government finances

Government Revenue

In 2010, the Government of Bangladesh reported total revenue of 794.84 million. Revenue from taxes was the major contributor to the revenue.

(Source: MOF– PDF file,MOF– PDF file)

(Source: MOF– PDF file,MOF– PDF file)

Fiscal Balance

In 2010, the total Government deficit was BDT 310.39 million, an increase of 24.35% over 2009.

(Source: MOF– PDF file)

Tax Revenue

In 2010, the Government generated BDT 620.46 million of revenue from taxes. Value Added Tax (VAT) and Income Tax were the main contributors to the tax revenue.

(Source: Central Bank – PDF file)

(Source: Central Bank – PDF file)

Current Account Balance

In 2010, the current account reported a net balance of USD 3,734 million, an increase of 54.55% over 2009. This increase was mainly because of a rise in exports of goods and services during the year.

(Source: Central Bank)

Balance of Payments

In 2010, total trade exports amounted to USD 15,581 million, of which about 79% of exports were readymade garments. During the same year, total income from the provision of services was USD 1,832 million.

(Source: Central Bank)

(Source: Central Bank)

Labour Force

In 2009, Bangladesh had an economically active population (labour force) of 53.7 million. Males constituted about 75% of the total labour force. During 2009, the Labour Force Participation Rate (LFPR) was 59.3% in the country.

(Source: PDF file page: 6)

(Source: PDF file, page: 6)

Unemployment Rate

In 2009, the country had an unemployment rate of 5.1%. Unemployment is mainly seen among females.

(Source: PDF file page: 7)

Employment in Agriculture

Employment in agriculture, forestry and fishing was 22.2 million in 2009, constituting 43.6% of the total employed population of the country.

(Source: PDF file, page: 8)

Employment in Industries

In 2009, industrial employment was 9 million, constituting 17.6% of the total employed population of the country.

(Source: PDF file, page: 8)

Employment in Services

In 2009, the service sector employed 19.8 million of the population, constituting 38.8% of the total employment of the country.

(Source: PDF file page: 8)

Minimum Wage

The National Minimum Wage Board of Bangladesh has decided a minimum wage of BDT 1,800 for workers across all industries.

(Source: minimum-wage.org)

In 2010, the average daily wage rate index was 116.68 for males and 118.39 for females.

Base year = 2006-07 = 100

(Source: PDF file)

Level of Unionisation

About 3.5% of the total labour force of the country is unionised. There are over 5,000 trade unions, including the Bangladesh Jatio Sramik League, Bangladesh Jatiyatabadi Sramik Dal, the Jatiya Sramik Party and the Bangladesh Free Trade Union Congress.

(Source: nationsencyclopedia.com)

Bangladesh has a parliamentary form of Government; functioning on the basis of its self drafted constitution. The powers of the Government are divided into executive, legislative and judiciary.

The executive powers of the country lie with the President, elected by members of the Parliament (the House of Nation). He is assisted by a Cabinet that is headed by the Prime Minister. The Cabinet also exercises the executive powers under the supervision and control of the President. The Cabinet also stands responsible to the House of Nation.

The House of Nation has the legislative powers of the country. It comprises of 300 members, elected by way of direct election and an additional 45 female members are elected by the existing members.

(Source: BBS – PDF file, page: 3)

Regulatory Environment

Bangladesh is ranked 130^th in the 2011 Index of Economic Freedom. Its economic freedom score is 53.0 (out of 100), an increase of 1.9 points from the previous year. The rise in ranking was due to higher business and investment freedom.

(Source: bgdportal.com, bgdportal.com)

(Source: bgdportal.com, bgdportal.com)

Judicial System

The judicial system of Bangladesh is divided into four broad categories 

•             Supreme Court
•             Appellate Division
•             High Court Division
•             District courts

The Supreme Court is the highest authority of jurisdiction, headed by a Chief Justice. The court consists of Appellate and High Court divisions. The Appellate Division hears appeals from the High Court’s order or judgements. The District courts are the local courts, solving and deciding over matters at district level.

(Source: BBS – PDF file page: 3)

Bangladesh is a densely populated country with 980 people residing per square kilometre. In 2008, the population of the country was 144.66 million, a growth of 1.40% over 2007. Males constitute 51.22% of the total population. the majority of the population in Bangladesh reside in rural areas.

(Source: BBS (pg1 & 2))

(Source: BBS (pg1 & 2))

(Source: BBS, page: 1)

Ethnic Environment

About 98% of the people are Bengalis and 2% people are Non-Bengali Muslims or belong to some tribal group.

(Source: state.gov)

By religion, about 89% of the people are Muslims and about 10% are Hindus. People following Buddhism, Christianity and other religions also reside in the country.

(Source: BBS, page: 1)

Birth and Death Rate

In 2008, the birth rate of the country was 20.54 births per 1,000 persons. During the same year, the death rate was 6.02 deaths per 1,000 persons.

(Source: BBS, page: 6 & 7)

Infant Mortality Rate

In 2009, the infant mortality rate in the country was estimated at 45 deaths per 1,000 live births.

(Source: BBS, page: 16)

Life Expectancy

In 2008, life expectancy at the time of birth was 65.61 years in the case of males and 67.96 years in the case of females.

(Source: BBS , page: 7)

Migration and Urbanisation

In 2008, 1.38 per 1,000 population migrated into Bangladesh and 1.86 per 1,000 population migrated outside the country.

(Source: BBS, page: 8)

About 25% of the total population of the country resides in urban areas. In 2008, 17.29 persons per 1,000 population migrated from the rural to the urban areas within the country.

(Source: BBS, page: 1 & 8)

Human Development Index (HDI)

Bangladesh is ranked 129^th on the HDI 2010. The HDI provides a composite measure of three dimensions of human development which are measured by life expectancy, adult literacy & enrolment in education and per capita GNP at Purchasing Power Parity (PPP).

(Source: HDR UNDP – PDF file)

Literacy Rate

In 2010, the adult literacy rate (people above age of 15 years) in Bangladesh was estimated at 60%.

(Source: DPE)

Education

The General Education system of Bangladesh is broadly divided into primary, secondary and tertiary education. Primary education includes five years of primary schooling. Secondary education comprises of seven years of total schooling divided into junior secondary (three years), secondary (two years) and higher secondary (two years). Tertiary education is classified into education from colleges and universities. College-level formal schooling ranges from 2-6 years depending on the type of degree/course, including bachelors and masters degree. Additionally, there are a number of universities in Bangladesh, offering a variety of formal and informal education.

The country also has pre-primary level of education for children up to the age of 6 years. The Ministry of Education also carries out special schooling under the categories – Madrasah Education, Technical – Vocational and Professional Education.

(Source: BANBEIS)

As of 2008, there were 100,974 schools in the country undertaking primary and secondary education. During the same year, the number of public universities was 31 and private universities were 51.

(Source: BANBEIS, BANBEIS)

(Source: BANBEIS, BANBEIS, BANBEIS)

Healthcare

As of 2010, there are 577 hospitals and health centres in the country, of which 460 hospitals are of primary level.

(Source: DGHS – PDF file, page: 1 & 2, PDF file, page: 5 & 6)

In 2010, the Government of Bangladesh spent a total of BDT 8528.47 million on healthcare. The healthcare expenditures were made according to the 19 operational plans developed by the Directorate General of Health Services (DGHS).

(Source: DGHS – PDF file)