This website uses cookies to ensure you have the best experience. Learn more

Macro Economic Indicators Of Bangladesh Economy

3116 words - 13 pages

Macro economic indicators of Bangladesh economy


The Bangladesh economy has experienced both macro-economic stability and robust economic growth following the transition to a democratic rule in the early of 1990s. In the backdrop of the deep macro-economic crisis of the late 1980s, a series of stabilization measures were introduced in the Bangladesh economy which largely restored macro-economic stability in the early 1990s.
Economic growth in Bangladesh averaged 6.3 percent during financial year (FY) 04-07. The economy has once again proved its resilience in achieving stronger than expected growth despite having to contend with the adverse effects of unfavorable weather ...view middle of the document...

In the 1990s, the growth momentum was higher during the second half of the decade in comparison to the first half: average growth rates were 4.4 per cent (FY91-95) and 5.2 per cent (FY96-00).

Growth Performance since Independence: An Overview

This section provides a brief overview of the growth performance of the Bangladesh economy and analyzes the sources of growth using the growth accounting framework. The broad objective is to understand the nature of economic growth achieved by the country in the backdrop of one of the most vulnerable economies in the world with extremely high population density, low resource base, high incidence of natural disasters, and persistent political instability. After independence in 1971, the country inherited a war-ravaged economy with the daunting challenge of reconstruction and recovery from the
devastation of the Liberation War. Notwithstanding these initial difficulties the real per capita income of the people has nearly doubled over the last three decades. This has been accompanied by impressive human development with the Human Development Index (HDI) value rising from 0.20 in 1970 to 0.49 in 1997, while the incidence of income poverty has been reduced by about a quarter (BIDS 2001). Yet, the development challenges remain formidable in view of the low per capita income of US $ 370 along with 50 per cent of the population living below the poverty line in 2000 and low global ranking in terms of most human development indicators.

Bangladesh has one of the lowest domestic savings rates among the developing countries in general and South Asian countries in particulars. Bangladesh's domestic savings performance in the early 1990s was in fact paralleled the budgetary performance. The national savings rate was more or less stagnated in the first period of 1990s, which represents a reversal of the macroeconomic gains of that period. But the domestic savings rates were more remarkable in that period. In FY91, the domestic savings rate was 18.23 per cent of GDP which was much higher than the average growth rate of the same period (14.12 per cent). The possible reasons responsible for that scenario were weakening efforts for mobilization of public sector resources and import liberalization, in the absence of a strengthening of domestic tax efforts after FY91.
The savings rate both domestic and national showed an increasing trend in the latter period of 1990s compared to its previous period, although it did not show any drastic change. The domestic savings rate is stagnated for last couple of years. In FY01 it was 18.00 per cent, stagnates at 18.27 per cent in FY04. On the other hand, the national savings rate also increased marginally from 22.41 per cent in FY01 to 22.49 per cent in FY04. The marginal increase of the latter is underpinned by increasing flow of foreign remittances from the expatriate Bangladeshi workers. The prolonged stagnation of the domestic savings may be largely explained by the...

Other Papers Like Macro Economic Indicators of Bangladesh Economy

The World Economy and the Logic of Economic (Under-) Development

1615 words - 7 pages Review Essay Global Political Economy The World Economy and the Logic of Economic (Under-) Development Table of content 1 Table of Content Introduction Summary Critical Discussion Conclusion Reference 3 3 4 5 6 Based on the following three articles: · Immanuel Wallerstein, „The Rise and Future Demise of the World Capitalist System“, Comparative Studies in Society and History 16 (1974), pp. 387-415. · Jagdish Bhagwati, „Free

Using Economic Analysis, Account for the Rapid Growth of an Economy in Recent Years

1267 words - 6 pages the rise in economic growth rates depend on the type of economy in the country, be it a labor intensive or capital intensive economy. The SOL considers both material and nonmaterial indicators thus it is insufficient to judge SOL with just one side. It is better to complement one indicator with more other indicators for a more accurate measure.

How Did The Economic Program Of Alexander Hamilton Help Revitalize The American Economy?

3237 words - 13 pages continentally. Hamilton wanted to match a strong economical sector with a strong agrarian sector because these two interests would support each other. If this could be accomplished, it would start to ensure America's economy would be in the process of revitalization because the agrarian and economic sectors would both be participation at the same level and therefore begin to revitalize and develop America. Therefore in the interest of America, it

Analyse the Impact of Development Strategies on the Economic Growth and the Quality of Life for an Economy Other Than Australia

1605 words - 7 pages Analyse the impact of development strategies on the economic growth and the quality of life for an economy other than Australia. (20 marks) Globalisation is the process of increasing integration between different countries and economies resulting in the establishment of a single world market and the increased impact of international influences on all aspects of life and economic activity. This essay will look at how globalisation has affected

Using the Data and Your Knowledge of Recent Economic Events, Assess the Contribution That Fiscal and Monetary Policies Can Make in Maintaining a Stable Economy

724 words - 3 pages As stable economy is one which has low rates on inflation and unemployment and a steady rate of economic growth along with a current account stability. Fiscal policy involves the use of government spending and tax receipts to influence the level and pattern of economic activity, whilst monetary policy uses interest rates to achieve the same. Fiscal and monetary policy can be used to influence short term Aggregate Demand with the aim of

Using the Data and Your Economic Knowledge, Assess the View That a Reduction in Income Tax Is the Best Way to Improve the Performance of the Uk Economy in Both the Short Run and Long Run

1284 words - 6 pages Improvement in the UK economy is usually dependant on the improvement of four major factors, economic growth, balance of payments, unemployment and inflation. This should lead to steady economic growth that would lead to a steady increase in the productive capacity in the economy. Income tax is the percentage of income that people are taxed upon that is given to the government. There are many policies that can be used to tackle these certain


4846 words - 20 pages check the existence of any long-run relationship. The Error Correction Model (ECM) test is essential to 3 see whether an economy is converging towards equilibrium in the long run or not. The ECM also shows short-run dynamics. To conduct this study the researchers have not followed any mathematical model to check relation between inflation and long run economic indicators. The rationale behind this study is to focus on recent causes of inflation

Environmental Accounting

1683 words - 7 pages . Thus, in Bangladesh, omission of the degradation and depletion of the country's natural capital will lead to over estimation of the national income figures. Why we will change Governments all over the world develop economic data systems familiar as System of National Accounts (SNA) to calculate macroeconomic indicators like GDP, GNP, savings rates, and trade balance figures, using a framework developed, supported, and disseminated by the United

Cultural Diversification Japan Vs Bangladesh

4725 words - 19 pages has experienced both macro-economic stability and robust economic growth following the transition to a democratic rule in the early of 1990s. In the backdrop of the deep macro-economic crisis of the late 1980s, a series of stabilization measures were introduced in the Bangladesh economy which largely restored macro-economic stability in the early 1990s. Subsequently, the Bangladesh economy registered an average GDP growth rate of 4.8 per cent in

Backup Of Bangladesh On Its Way To Become A Middle-Income Country By 2021

4115 words - 17 pages the capacity of the country's social infrastructure in achieving the desired level of economic growth rate and subsequently the targeted per capita income level. As far as the social infrastructure, in terms of education and health, is concerned, there is a valid question to ask, whether Bangladesh is poised to leap towards a middle income country. In this article, we focus on two indicators, public expenditure on education as a percentage

Business Combination

3333 words - 14 pages gender equality in education, combating HIV/AIDS, malaria and other diseases, and significantly reducing infant and child mortality rates. However, maternal and neonatal mortality rates remain unacceptably high. Although gender indicators are improving, many women still face extreme social and economic disadvantages. Violence against women and girls is common, affecting one out of every two women. Bangladesh also has one of the highest rates

Related Essays

Socio Economic Indicators Of Bangladesh Essay

597 words - 3 pages Socio-Economic Indicators of Bangladesh General Geographical Location/Characteristics Location 200 34' & 260 38' North Latitude 880 01' & 920 41' East Longitude Area (Sq. Km) Standard Time 147570 GMT+6 Hours Rate (%) of Poverty Based on Report on Household Income & Expenditure Survey (HIES)- 2010 [ Based on Cost of Basic Needs (CBN) Method ] Using upper poverty line National Rural Urban Using lower Poverty line National Rural Urban Gross

Macro Economy Enviorment Of South Africa.Doc

4479 words - 18 pages Macro Economy Enviorment of South Afrcia Ⅰ. General Situation of South Afrcia Republic of South Africa is located in the southernmost tip of the African continent, east, west, south three sides surrounded by the Indian Ocean and the Atlantic, land with Mozambique, Swaziland, Zimbabwe, Botswana, Namibia and adjacent to, Lesotho, surrounded by his middle. South Africa is the only advanced capitalist industrial countries, industrial production

Economic Contribution Of Women In Bangladesh

2603 words - 11 pages development activities throughout Bangladesh. Statementof the study: Women’s contribution of economy in Bangladesh. SIGNIFICANCEOF THE STUDY: It is envisaged that the study willfind a causal relationship among women entrepreneurship SME, RMG, Agricultureand economic development of Bangladesh and demonstrate the effectiveness ofwomen’s participation in economic activities to help gender equality. The studywill also show how to integrate

Impact Of Nationwide Strikes On Economic Development: A Case Study Of Bangladesh

4473 words - 18 pages relative calm and economic progress, though its main political parties remain polarized. Post Independence Bangladesh had to face the devastation wrought by earlier economic exploitation during the Pakistan era as well as destruction of critical infrastructure during the war. After many years of economic problems, Bangladesh has started to rebound with steady growth in recent years. The economy of Bangladesh is a rapidly developing market