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Economy of Bangladesh PDF Print E-mail
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Monday, 16 May 2011 20:41
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At April 2010, USA - based ratings agency Standard & Poor's (S&P) awarded Bangladesh a BB- for a long term in credit rating which is below India Dhakaand well over Pakistan and Sri Lanka in South Asia. And, despite continuous domestic and international efforts to improve economic and demographic prospects, Bangladesh remains a developing nation. However, Bangladesh gradually decreased its dependency on foreign grant and loan from 85% (In 1988) to 2% (In 2010)  for its annual development budget. Its per capita income in 2010 was US$641 compared to the world average of $8,985. But, if purchasing power parity (PPP) is taken into account, Bangladesh's economy is the 44th largest in the world at US$257 billion according to the IMF.

Jute was once the economic engine of the country. Its share of the world export market peaked in the Second World War and the late 1940s at 80% and even in the early 1970s accounted for 70% of its export earnings. However, polypropylene products began to substitute for jute products worldwide and the jute industry started to decline. Bangladesh grows very significant quantities of rice, tea, potato, mango, onion and mustard. According to FAOSTAT, Bangladesh is one of world's largest producers of: Rice (4th), Potato (11th), Mango (9th), Pineapple (16th), Fruit, Tropical (5th), Onion (16th), Banana (17th), Jute (2nd), Tea (11th).

Although two-thirds of Bangladeshis are farmers, more than three quarters of Bangladesh’s export earnings come from the garment industry, which began attracting foreign investors in the 1980s due to cheap labour and low conversion cost. In 2009-10 fiscal year the industry exported US$ 12.6 billion worth of products where in 2002 the exported amount was US$ 5 billion. Recently Bangladesh has been ranked as the 4th largest clothing exporter by the WTO (The World Trade Organization). The industry now employs more than 3 million workers, 90% of whom are women. A large part of foreign currency earnings also comes from the remittances sent by expatriates living in other countries.



Last Updated on Tuesday, 17 May 2011 07:09