Private Sector Outlook
Country Outlook
Bangladesh,as a country, precisely abridges the key attributes of the emerging South Asianmarkets and ranks among the fastest growing markets of South East Asia.According to global experts, Bangladesh is poised to become a middle incomecountry by 2021; at present, the country fares well with a USD 220 Billioneconomy, 159.9 Million population ofwhich 50% are less than 25 years, a thriving middle income segment and a stableGDP growth of above 5% over the last decade. Bangladesh's growth has been resilientduring the 2008-09 global financial crisis and recent global recession. Thecountry aspires to become the regional manufacturing hub with a pool ofcompetitive labour.
Bangladeshhas achieved Ba3 (Moody's) stable rating for consecutive years (2010-13), andBangladesh's country rating by Moody’s is currently higher than that of SriLanka (B1). The current macroeconomic situation in the country is characterizedby a manageable fiscal deficit and low current account deficit. The stablemacroeconomic situation is an outcome of a mixture of prudent monetary andfiscal policies that are being pursued. The external current account deficithas also been low. This reflects the country’s continued high growth inexports, increased flows of remittances and moderate growth in money supply.
Bangladesh Economy: at a glimpse
As per the Bangladesh Bureau of Statistics, GDPgrowth rate has reached 7.05%. For the first time, Bangladesh has achieved thisgrowth rate with a vision to stable on it. Bangladesh's Ba3 rating reflectsstable and strong growth performance and modest debt burden- Moody's
GDP total: | BDT 17295.7 Billion (at current market prices 2015-16) |
GDP per capita: | BDT 108172 (at current market prices 2015-16) |
GDP growth rate (%): | 7.05 (at current market prices 2015-16) |
Total exports: | BDT 1675.4 Billion (2015-16) |
Total imports: | BDT 1990.5 Billion (2015-16) |
Foreign exchange reserves: | USD 29.131 Billion (2015-16) |
Source: Bangladesh Economic Review 2016
Bangladesh: Trends of Major Macroeconomic and Social Indicators
Table01: Trends of major macroeconomic and social indicators
Indicators | FY 09-10 | FY 10-11 | FY 11-12 | FY 12-13 | FY 13-14 | FY 14-15 | FY 15-16 |
Population (Million) | 147.8 | 149.7 | 151.6 | 153.7 | 155.8 | 157.9 | 159.9 |
Income (GNI per capita in US Dollar) | 685 | 777 | 884 | 991 | 1096 | 1219 | 1374 |
Foreign Exchange Reserves (Million US Dollar) | 10750 | 10912 | 10364 | 15315 | 21558 | 25025 | 29131 |
Source: Bangladesh Economic Review 2016
Bangladesh Yesterday | Bangladesh Today and Tomorrow |
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Private Sector Outlook
Bangladesh:a country with a vibrant private sector
The export-oriented industries,in particular ready-made garments, propelled the manufacturing sector to newheights, with a vibrant private sector taking advantage of the low unit labourcosts to expand into new markets. Finally, the service sector has gainedmomentum from relatively strong domestic demand, bolstered by remittances andnew policy initiatives allowing more private participation and increasedcompetition. "Things look positive for Bangladesh" according toNaoyuki Shinohara, Deputy Managing Director of IMF.
The privatesector turns the wheel of economic activities of the country, aided by aliberal export oriented economic policy. Bangladesh has gradually transformedherself into an assembling and manufacturing heart, seeking for rapid expansionof the service sector. Private investment in FY 2015-16 stands at BDT 3767.5 Billioncompared to public investment of BDT 1313.8 Billion in the same year. Theprivate sector component as a percentage of GDP has increased from 16.8% fromthe FY2001-02 to 21.8 % in the FY 2015-16.
Table 03: Gross Domestic Product(GDP), Investment and Savings (BDT Billion)
Item/Sectors | FY 09-10 | FY 10-11 | FY 11-12 | FY 12-13 | FY 13-14 | FY 14-15 | FY 15-16 |
GDP (at current market prices) | 7975.4 | 9158.3 | 10552.0 | 11989.2 | 13436.7 | 15158.0 | 17295.7 |
Gross Investment (at current prices) (i) Public
(ii) Private | 2093.3 372.8
1720.5 | 2511.3 481.5 2029.8 | 2982.3 608.0 2374.2 | 3403.7 796.2 2607.5 | 3839.9 879.9 2960.0 | 8478.7 1034.0 3344.7 | 5081.3 1313.8 3767.5 |
Gross Domestic Savings | 1665.1 | 1897.6 | 2239.5 | 2642.0 | 2968.2 | 3358.8 | 4132.3 |
Agriculture and Forestry | 1109.9 | 1254.7 | 1388.8 | 1487.6 | 1639.7 | 1765.0 | 1892.7* |
Manufacturing (a) Large and Medium Scale (b) Small Scale | 1285.7
1016.2
269.5 | 1465.0
1164.5
300.4 | 1679.2
1344.0
335.3 | 1971.3
1584.5
386.8 | 2232.2
1803.8
428.0
| 2544.8
2060.0
484.9 | 2922.8
2384.0
538.9 |
Services (i) Wholesale & retail trade (ii) Hotel & restaurants (ii) Financial intermediary (iv) Real estate, renting & business activities (v) Education |
1066.1
70.28
234.5
544.3
182.6 |
1213.3
82.3
275.5
601.2
213.9 |
1374.0
97.6
363.2
687.2
250.5 |
1545.8
112.6
422.4
788.2
284.3 |
1725.8
130.4
485.6
912.3
327.7 |
1925.9
149.3
557.6
106.1
376.2 |
2144.1
170.61
628.8
124.0
451.3 |
Source:Bangladesh EconomicReview 2016 * Temporary