Economy of Bangladesh

Hello friends hope you are well. Today I will be writing about the economy of Bangladesh. The economy of this nation has grown 5-6% per year since 1996 despite inefficient state-owned enterprises, delays in exploiting natural gas resources, insufficient power supplies, and slow achievement of economic reforms. But still Bangladesh remains a poor, overpopulated, and inefficiently-governed nation. Although more than half of GDP is generated through the service sector, nearly two-thirds of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product. Garment exports and remittances from Bangladeshis working overseas, mainly in the Middle East and East Asia, fuel economic growth. In 2008 Bangladesh pursued a monetary policy aimed at maintaining high employment, but created higher inflation in the process.

Major impediments to growth include frequent cyclones and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly growing labor force that cannot be absorbed by agriculture, delays in exploiting energy resources (natural gas), insufficient power supplies, and slow implementation of economic reforms. Economic reform is stalled in many instances by political infighting and corruption at all levels of government. Progress also has been blocked by opposition from the bureaucracy, public sector unions, and other vested interest groups. For higher GDP growth, investments in both public and private sectors will need to be accelerated. The prevailing political and economic stability has greatly encouraged investment in the private sector. The trend of foreign direct investment is very encouraging. These way friends, the economy of Bangladesh will surely boost by 2050.