Last Updated on June 21, 2021 by Aminul Haque Shahin
Bangladesh has come a long way since its birth in 1971. The economy is booming and the country is making impressive progress towards achieving middle-income status by 2030.
Bangladesh is an emerging economy that has been growing at a steady pace and in the last decade, it has achieved more than what people expected. In the last five years, the economy has expanded by three times, GDP grew by 13%, and inflation fell to single digits.
Bangladesh has been expanding its economy for many years now and the GDP growth has averaged about 4.5% in the last decade. In addition to its exports of ready-made garments, remittances, and domestic agricultural sector less than half a percent of Bangladesh is covered by forest land.
Bangladesh’s success can be attributed to a number of factors such as its abundant natural resources (including gas) and a skilled workforce.
Bangladesh has seen a staggering growth in its economic activity. Most of the credit for this goes to the Bangladeshi government and their focus on education, infrastructure, and other areas that have lead to the country’s strong economic performance.
Bangladesh economy is booming because of its rapid growth rate and low inflation rate. These factors have led to a growth in GDP, trade volume, and foreign reserves. The main reasons why Bangladesh’s economy is booming are low government spending and cheaper labor costs compared to India.
Bangladesh is a hub for outsourcing and IT development services. It has also seen a rise in remittances from its diaspora. There has been a steady increase in tourist arrivals from Australia, Europe, and North America which is usually considered as an indicator of economic health
Bangladesh’s annual growth rate has been averaging at 6% since 2014. This was achieved through increased public spending on infrastructure and improvements on agricultural production, industrial output, and exports.
In order to promote an inclusive society, Bangladesh has also put focus on education which leads to a higher human capital productivity.
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There are 4 Major Factors That Influenced Heavily On Bangladesh’s Growth:
Firstly, the country has a large population of 200 million people who work hard and contribute a lot to the GDP.
Secondly, in recent years, Bangladesh has seen an increase of 1.4 billion US dollars due to the rise of IT companies like Google and Facebook investing heavily in their country.
Thirdly, there are many businesses that invest in Bangladesh because they are confident that this will grow their business profit margin to as high as 25%.
Fourthly, it is also because Bangladesh’s major export goods include textiles as well as garments which have been increasing over the years.
There Are 40 Major Reasons For Why Bangladesh Economy Is Booming
There are many other factors that have contributed to this major economic boom including low labor cost, skilled workforce, support from government and low taxation levels.
With these immense opportunities for growth ahead of them, Bangladeshis are certainly optimistic about what the future holds for their country’s economy. Here are some of those:
1. Job availability increasing
2. International market access with Garments
3. Low government spending
4. Cheap labor cost relative to India
5. Low inflation rate
6. Exports: electronics – $2 billion, apparel – $1 billion in Bangladesh
7. Foreign investment: $6 billion since 2012 (10% of GDP) to Bangladesh
8. Bangladesh is rich in natural resources
9. Bangladesh’s skillful workforce
10. A large domestic market
11. Dhaka has large market for investment
12. Great port facilities
13. Improved Health care facilities
14. Well-connected infrastructure
15. Improved Living conditions
16. Rapid increase in per capita income
17. Growth rate of GDP at more than 7% per annum
18. Rise in private consumption, which has increased from 3% to 4% of GDP over last five years in Bangladesh
19. Decrease in poverty rate
20. Increase in remittance inflows into the country in Bangladesh
21. Rise in exports and imports
22. Facilitation of formalization of small businesses and growth in the manufacturing industry over last five years
23. Increase in agricultural production, which has increased by almost 25% since 2011
24. Better road network and higher cellular phone penetration rates have led to increased mobility for Bangladesh
25. Good Market for Product Expansion
26. Steady Growth of Manufacturing Industry
27. Prime Location Between India & China for Trade & Investment Opportunities in the Bangladeshi Region
28. High Quality Technical Education System that Attracts Foreign Investments
29. Rapidly Growing Middle-Class Population with Spending Power
30. Price Optimization of Bangladeshi Goods Competing in the Global Market
31. Visionary Leadership of Prime Minister Sheikh Hasina and her successful legacy to Improve Bangladesh Economy over the Past Decade
32. Value-Addition Facilities that Provide Added Value and Income Opportunities for Small Farmers
33. Low-Cost Manufacturing
34. Easy to Do Business
35. Good Infrastructure & Transport
36. Rich Culture
37. Capital Flows from Middle East and China to Bangladesh
38. Surge of Freelancing and Outsourcing professionals
39. Bureaucratic improvement of Bangladesh with foreign countries for more manpower export and business deals
40. Tech Innovation