|
|
 |
| |
| Bangladesh |
| Economic
Overview |
| Key
Economic Indicators |
|
1991 |
1992 |
1993 |
1994 |
1995 |
| Interest rate %
(lending) |
12.46 |
13.59 |
12.85 |
11.48 |
10.94 |
| Interest rate %
(deposit) |
7.62 |
8.01 |
6.27 |
4.47 |
3.85 |
| Consumer prices
(% charge over previous year) |
4.3 |
3.7 |
2.7 |
4.1 |
5.4 |
| Balance
of Payments |
|
|
|
|
|
| Exports of Goods
(bn US) |
03.71 |
430.62 |
382.15 |
429.53 |
511.53 |
| Imports of Goods
(Deposit) |
385.24 |
403.78 |
341.48 |
379.78 |
445.52 |
| Trade Balance |
18.47 |
26.84 |
40.67 |
49.57 |
66.01 |
| Services -Credit |
63.81 |
67.21 |
62.26 |
63.02 |
76.52 |
| Services - Debit |
81.04 |
94.79 |
93.65 |
100.98 |
120.44 |
| Balance on goods
and services |
1.24 |
-75.0 |
9.98 |
11.79 |
22.10 |
| Income - Credit |
71.95 |
78.19 |
76.18 |
76.54 |
95.65 |
| Income – Debit |
53.64 |
63.78 |
65.29 |
71.69 |
96.97 |
| Balance on goods,
services and income |
19.55 |
13.67 |
20.16 |
16.65 |
20.77 |
| Current transfers
Credit |
16.64 |
19.36 |
18.09 |
20.50 |
24.52 |
| Current transfers
Debit |
54.96 |
54.53 |
53.33 |
58.58 |
65.06 |
| Current account |
-18.77 |
-21.51 |
-15.08 |
-21.42 |
-19.77 |
| Capital account
Credit |
0.78 |
1.12 |
1.38 |
1.56 |
1.68 |
| Capital account
Debit |
1.44 |
0.52 |
0.89 |
1.42 |
2.33 |
| Capital account |
-0.66 |
0.60 |
0.49 |
0.15 |
-0.65 |
| Direct Investment
abroad |
23.72 |
19.67 |
15.28 |
16.69 |
34.89 |
| Direct Investment
in FRG |
4.07 |
2.64 |
1.82 |
0.81 |
8.94 |
| Portfolio investment
abroad |
17.19 |
48.06 |
32.73 |
55.27 |
30.26 |
| Portfolio investment
liabilities |
42.79 |
80.00 |
152.14 |
22.10 |
56.99 |
| Other investment
assets |
23.89 |
7.29 |
131.42 |
0.85 |
63.80 |
| Other investment
liabilities |
23.98 |
44.57 |
41.27 |
75.74 |
96.20 |
| Financial account |
5.43 |
52.19 |
15.80 |
25.84 |
32.18 |
| Net errors and
omissions |
8.02 |
5.90 |
-15.41 |
-6.60 |
-5.54 |
| Overall balance |
-5.98 |
37.18 |
-14.20 |
-2.04 |
7.22 |
| Gross domestic
product DM.bn |
2647.6 |
2813.0 |
2853.7 |
2977.7 |
- |
| Gross national
product |
2668.6 |
819.8 |
2842.8 |
2945.3 |
- |
| GDP at 1990 prices |
2548.6 |
593.5 |
2549.5 |
2608.3 |
- |
| GDP deflator (1990-100) |
103.9 |
108.5 |
111.9 |
114.2 |
- |
| |
|
|
|
|
|
| Trade |
|
|
|
|
|
| Export (US$ mn) |
1904 |
2383 |
2534 |
3500 |
4060 |
| Import (US$ mn) |
3463 |
4071 |
4191 |
5700 |
6300 |
| Terms of trade
(1979 - 80=100) |
96.2 |
99.7 |
102.3 |
93.4 |
100.0 |
| Public
Finance |
|
|
|
|
|
| Current revenue
(US$ mn) |
2495 |
2823 |
3070 |
3530 |
3853 |
| Tax revenue (US$
mn) |
2030 |
2304 |
2470 |
2760 |
3044 |
| Current expenditure
(US$ mn) |
2071 |
2145 |
2287 |
2559 |
2761 |
| Annual
Development Programme (US$ mn) |
1875 |
2075 |
2400 |
2563 |
2452 |
| Savings
and Investment As % of GDP |
|
|
|
|
|
| Investment |
12.1 |
14.0 |
14.2 |
15.0 |
16.5 |
| Public investment |
5.5 |
6.4 |
6.3 |
6.7 |
7.2 |
| Private investment |
6.6 |
7.6 |
7.9 |
8.2 |
9.3 |
| National savings |
13.0 |
14.2 |
15.1 |
15.8 |
16.9 |
| Domestic savings |
5.8 |
6.7 |
7.5 |
8.7 |
9.9 |
| Rate and inflation
|
5.1 |
1.3 |
1.8 |
4.0 |
5.5 |
| Av. exchange rate |
38.15 |
39.15 |
40.00 |
40.25 |
40.10 |
| |
|
|
|
|
|
| (Taka/US$) |
|
|
|
|
|
E – Estimated
P – Projected
Balance of Payment:
The balance of payments deteriorated in 1994-95, due to the
huge increase in imports invisible payments, unfavourable external
conditions and decline in terms of trade. The current account
deficit increased by 132.14% to US$ 975 million (3.6% of GDP).
Trade deficit increased by 32.77% to US$ 2200 million. Export
price index remained static while import price index rose by
9.5%. As a result, terms of trade declined by 8.7%. |
| |
| Economic
Affairs |
| Major
Industry Sectors: |
 |
Food Processing |
|
Chemicals |
|
Basic metals |
|
Readymade garments |
|
Hosiery and knitwear |
|
Small and industries |
| |
Major Agriculture
Sectors
Principle crops: rice, wheat, sugar cane, potatoes, pulses,
oil seeds, jute.
Livestock: cattle, buffaloes, sheep, goats, chickens, ducks. |
| |
| Trade: Major
Trading Partners (Value in US$ mn) - 1996-97 |
Country
|
Exports |
Imports |
| USA |
1431.80 |
310.86 |
| Gernany |
428.11 |
171.82 |
| U.K. |
438.21 |
164.88 |
| France |
312.27 |
142.37 |
| Italy |
203.57 |
52.78 |
| Belgium |
210.45 |
19.34 |
| Netherlands |
208.72 |
61.69 |
| Japan |
114.15 |
576.07 |
| Singapore |
33.00 |
452.57 |
| Pakistan |
39.04 |
104.32 |
| India |
46.49 |
1065.79 |
| China |
55.31 |
660.17 |
| |
A few international
political issues have affected the business climate in Bangladesh,
the single most important one being the use of child labour
in the garment industry, which is now being monitored by the
ILO. However domestic political issues, in particular the coordinated
boycott of the national Parliament by all major opposition parties
since March 1994, has had a negative effect, causing a loss
of 45 working days in the last year through strikes, demonstrations
and blockades of main transport, including the airport. Elections
held in June 1996 have improved the domestic political climate.
Bangladesh has historically followed an import-substitution
policy using tariffs combined with non-tariff barriers. The
combination of non-tariff import controls and inefficient import
procedure has traditionally been as important as fiscal measures
in shielding Bangladesh from competitive international prices.
Import duties have traditionally been the core source of government
revenue, partly due to the very narrow industrial base of the
country. In recent years Bangladesh has reoriented its trade
police towards a higher degree of openness, and various reforms
have been started, including reduction of tariffs, removal of
quantitative restrictions and simplification of import procedures.
However, there is still room for further reforms before Bangladesh
can be characterised as an open economy. |
| |
| Tourism |
|
1990 |
1991 |
1992 |
| Tourist arrivals |
115,369
|
113,242 |
110,472 |
|
| |
| Investments |
|
1990 |
1991 |
1992 |
| Investment
projects registered by Board of Investment |
1574.00
|
2675.00 |
2121.67 |
| Investment made by
BSCIC |
102.50 |
30.58 |
53.88 |
| Total |
1712.43 |
3793.98 |
2210.06 |
| |
| The Government is actively trying to encourage
foreign investment, but has only had modest success in doing
so. It is estimated that a total of 100 foreign companies have
invested in Bangladesh. Despite tax holidays, reduced import
duties on capital goods, permission for 100% foreign ownership
in most sectors and the grant of tax exemption on various items,
disincentives such government red tape and corruption. The uncertain
law and order situation, widespread poverty, poor infrastructure
and political instability have limited foreign investment in
Bangladesh. Six sectors are reserved for government investment,
including production of arms, nuclear power, forestry in protected
areas, airways and transmission and distribution of electricity.
But these sectors are expected to be liberalised gradually. |
| |
| Organizational
Membership |
| Asian Development Bank (ADB) |
| World Trade Organization (WTO) |
| International Bank for Reconstruction
and Development (IBRD) |
| Islamic Development Bank (IDB) |
| International Finance Corporation
(IFC) |
| International Monetary Fund
(IMF) |
| International Standards Organization
(ISO) |
| United Nations (UN) |
| United National Conference
on Trade and Development (UNCTAD) |
| World Customs Organization
(WCO) |
| World Intellectual Property
Organization (WIPO) |
| Commonwealth Customs Cooperation
Council (CCC) |
| International Marine Ordinance
(IMO) |
| Colombo Plan |
| South Asian Association for
Regional Cooperation (SAARC) |
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