Bangladesh Economy Profile 2012

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Economy - overview
The economy has grown 5-6% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, and slow implementation of economic reforms. Bangladesh remains a poor, overpopulated, and inefficiently-governed nation. Although more than half of GDP is generated through the service sector, 45% of Bangladeshis are employed in the agriculture sector with rice as the single-most-important product. Bangladesh's growth was resilient during the 2008-09 global financial crisis and recession. Garment exports, totaling $12.3 billion in FY09 and remittances from overseas Bangladeshis, totaling $11 billion in FY10, accounted for almost 12% of GDP.

GDP (purchasing power parity)

$282.5 billion (2011 est.) $265.7 billion (2010 est.) $249.8 billion (2009 est.) note: data are in 2011 US dollars

GDP (official exchange rate)

$115 billion (2011 est.)

GDP - real growth rate

6.3% (2011 est.) 6.4% (2010 est.) 5.9% (2009 est.)

GDP - per capita (PPP)

$1,700 (2011 est.) $1,600 (2010 est.) $1,500 (2009 est.) note: data are in 2011 US dollars

GDP - composition by sector

agriculture: 18.4%

industry: 28.6% services: 53% (2011 est.)

Population below poverty line

31.5% (2010 est.)

Labor force
75.42 million note: extensive export of labor to Saudi Arabia, Kuwait, UAE, Oman, Qatar, and Malaysia; workers' remittances were $10.9 billion in FY09/10 (2011 est.)

Labor force - by occupation

agriculture: 45% industry: 30% services: 25% (2008)

Unemployment rate
5% (2011 est.) 5.1% (2010 est.) note: about 40% of the population is underemployed; many participants in the labor force work only a few hours a week, at low wages

Unemployment, youth ages 15-24

total: 9.3% male: 8% female: 13.6% (2006)

Household income or consumption by percentage share

lowest 10%: NA highest 10%: 26.6% (2008 est.)

Distribution of family income - Gini index

33.2 (2005) 33.6 (1996)

Investment (gross fixed)

24.7% of GDP (2011 est.)

Budget
revenues: $12.67 billion expenditures: $17.15 billion (2011 est.)

Taxes and other revenues

11% of GDP (2011 est.)

Budget surplus (+) or deficit (-)

-3.9% of GDP (2011 est.)

Public debt
36.7% of GDP (2011 est.) 35.4% of GDP (2010 est.)

Inflation rate (consumer prices)

10.7% (2011 est.) 8.1% (2010 est.)

Central bank discount rate

5% (31 December 2010 est.) 5% (31 December 2009 est.)

Commercial bank prime lending rate

13.4% (31 December 2011 est.) 13% (31 December 2010 est.)

Stock of money
$10.35 billion (30 September 2009)

$8.444 billion (31 December 2007)

Stock of narrow money

$16.27 billion (31 December 2011 est.) $14.12 billion (31 December 2010 est.)

Stock of broad money

$59.86 billion (30 October 2011 est.) $56.44 billion (31 December 2010 est.)

Stock of quasi money

$45.23 billion (30 September 2009) $37.98 billion (31 December 2008)

Stock of domestic credit

$73.69 billion (31 December 2011 est.) $64.71 billion (31 December 2010 est.)

Market value of publicly traded shares

$47 billion (31 December 2010) $7.068 billion (31 December 2009) $6.671 billion (31 December 2008)

Agriculture - products
rice, jute, tea, wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit; beef, milk, poultry

Industries
jute, cotton, garments, paper, leather, fertilizer, iron and steel, cement, petroleum products, tobacco, drugs and pharmaceuticals, ceramic, tea, salt, sugar, edible oil, soap and detergent, fabricated metal products, electricity and natural gas

Industrial production growth rate

7.4% (2011 est.)

Electricity - production
25.62 billion kWh (2009 est.)

Electricity - production by source

fossil fuel: 93.7% hydro: 6.3% nuclear: 0% other: 0% (2001)

Electricity - consumption
23.94 billion kWh (2009 est.)

Electricity - exports
0 kWh (2009 est.)

Electricity - imports
0 kWh (2009 est.)

Oil - production
5,724 bbl/day (2010 est.)

Oil - consumption
98,000 bbl/day (2010 est.)

Oil - exports
2,770 bbl/day (2009 est.)

Oil - imports
77,340 bbl/day (2010 est.)

Oil - proved reserves

28 million bbl (1 January 2011 est.)

Natural gas - production

19.75 billion cu m (2009 est.)

Natural gas - consumption

20.1 billion cu m (2010 est.)

Natural gas - exports

0 cu m (2009 est.)

Natural gas - imports

0 cu m (2009 est.)

Natural gas - proved reserves

195.4 billion cu m (1 January 2011 est.)

Current Account Balance

-$372 million (2011 est.) $2.502 billion (2010 est.)

Exports
$23.86 billion (2011 est.) $19.24 billion (2010 est.)

Exports - commodities
garments, knitwear, agricultural products, frozen food (fish and seafood), jute and jute goods, leather

Exports - partners

US 22.1%, Germany 14.1%, UK 8.5%, France 6.8%, Netherlands 6.1% (2009)

Imports
$31.75 billion (2011 est.) $24.72 billion (2010 est.)

Imports - commodities
machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cement

Imports - partners
China 18.9%, India 12.7%, Singapore 6%, Malaysia 4.7%, Japan 4% (2009)

Reserves of foreign exchange and gold

$10.98 billion (31 December 2011 est.) $11.18 billion (31 December 2010 est.)

Debt - external
$24.93 billion (31 December 2011 est.) $24.6 billion (31 December 2010 est.)

Stock of direct foreign investment - at home

$7.216 billion (31 December 2011 est.) $6.107 billion (31 December 2010 est.)

Stock of direct foreign investment - abroad

$94.2 million (31 December 2011 est.) $91.2 million (31 December 2010 est.)

Exchange rates
taka (BDT) per US dollar 73.7 (2011 est.) 69.65 (2010 est.) 69.04 (2009)

68.554 (2008) 69.893 (2007)

Fiscal year
1 July - 30 June

Bangladesh Inflation Rate

The inflation rate in Bangladesh was recorded at 7.69 percent in December of 2012. Inflation Rate in Bangladesh is reported by the Bangladesh Bureau of Statistics. Historically, from 1994 until 2012, Bangladesh Inflation Rate averaged 6.6 Percent reaching an all time high of 12.7 Percent in December of 1998 and a record low of 0.0 Percent in December of 1996. In Bangladesh, the inflation rate measures a broad rise or fall in prices that consumers pay for a standard basket of goods. This page includes a chart with historical data for Bangladesh Inflation Rate.
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nflation: What Is Inflation?

Filed Under 401K, Inflation, Macroeconomics, Retirement Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand. There are several variations on inflation:

Deflation is when the general level of prices is falling. This is the opposite of inflation. Hyperinflation is unusually rapid inflation. In extreme cases, this can lead to the breakdown of a nation's monetary system. One of the most notable examples of hyperinflation occurred in Germany in 1923, when prices rose 2,500% in one month!

Stagflation is the combination of high unemployment and economic stagnation with inflation. This happened in industrialized countries during the 1970s, when a bad economy was combined with OPEC raising oil prices.

Growth Stock Pick (CTLE)

In recent years, most developed countries have attempted to sustain an inflation rate of 2-3%.

Watch: Monetary Inflation Causes of Inflation Economists wake up in the morning hoping for a chance to debate the causes of inflation. There is no one cause that's universally agreed upon, but at least two theories are generally accepted: Demand-Pull Inflation - This theory can be summarized as "too much money chasing too few goods". In other words, if demand is growing faster than supply, prices will increase. This usually occurs in growing economies. Cost-Push Inflation - When companies' costs go up, they need to increase prices to maintain their profit margins. Increased costs can include things such as wages, taxes, or increased costs of imports. Costs of Inflation Almost everyone thinks inflation is evil, but it isn't necessarily so. Inflation affects different people in different ways. It also depends on whether inflation is anticipated or unanticipated. If the inflation rate corresponds to what the majority of people are expecting (anticipated inflation), then we can compensate and the cost isn't high. For example, banks can vary their interest rates and workers can negotiate contracts that include automatic wage hikes as the price level goes up. Problems arise when there is unanticipated inflation:

Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan. Uncertainty about what will happen next makes corporations and consumers less likely to spend. This hurts economic output in the long run. People living off a fixed-income, such as retirees, see a decline in their purchasing power and, consequently, their standard of living. The entire economy must absorb repricing costs ("menu costs") as price lists, labels, menus and more have to be updated.

If the inflation rate is greater than that of other countries, domestic products become less competitive.

People like to complain about prices going up, but they often ignore the fact that wages should be rising as well. The question shouldn't be whether inflation is rising, but whether it's rising at a quicker pace than your wages. Finally, inflation is a sign that an economy is growing. In some situations, little inflation (or even deflation) can be just as bad as high inflation. The lack of inflation may be an indication that the economy is weakening. As you can see, it's not so easy to label inflation as either good or bad - it depends on the overall economy as well as your personal situation. Read more: http://www.investopedia.com/university/inflation/inflation1.asp#ixzz2JOVijsa9