Economy
Bangladesh's lower-middle income mixed-market economy is among
the fastest growing economies in the world.[173][174] A rapidly developing
country, it has the world's 36th-largest economy by nominal terms, and the
24th-largest by PPP. Bangladesh has a labor force of 71.4 million,[175] which
is the world's seventh-largest; with an unemployment rate of 5.1% as of
2023.[176] Its foreign exchange reserves, although depleting,[177] remain the
second-highest in South Asia, after India. Bangladesh's large diaspora
contributed roughly $27 billion in remittances in 2024.[178] It has achieved
remarkable feats in reducing its poverty rate, which has gone down from 80% in
1971,[179] to 44.2% in 1991,[180] all the way down to 18.7% in 2022.[181] The
Bangladeshi taka is the national currency.
As of 2023, the large service sector accounts for about
51.5% of total GDP, followed by the industrial sector (34.6%), while the
agriculture sector is by far the smallest, making up only 11% of total
GDP;[182] despite being the largest employment sector, providing roughly half
of the total workforce.[183] Over 84% of the export earnings come from the
textile industry.[184] Bangladesh is the second-leading garments exporter in
the world, and plays a crucial role in the global fast fashion industry,
exporting to various Western fashion brands.[185] It is also a major producer
of jute,[186] rice,[187] fish,[188] tea,[189] and flowers.[190] Other major
industries include shipbuilding, pharmaceuticals, steel, electronics and
leather goods.[191] China is the largest trading partner of Bangladesh, accounting
for 15% of the total trade, followed by India; which accounts for 8% of the
total trade.[192]
The private sector accounts for 80% of GDP compared to the
dwindling role of state-owned companies.[193] Bangladesh's economy is dominated
by family-owned conglomerates and small and medium-sized businesses. Some of
the largest publicly traded companies in Bangladesh include BEXIMCO, BRAC Bank,
BSRM, GPH Ispat, Grameenphone, Summit Group, and Square Pharmaceuticals.[194]
The Dhaka and Chittagong Stock Exchanges are the country's twin capital
markets.[195] Its telecommunications industry is one of the world's fastest
growing, with 188.78 million cellphone subscribers at the end of November
2024.[196] Political instability,[197] high inflation,[198] endemic corruption,[199]
insufficient power supplies,[200] and slow implementation of reforms are major
challenges to economic growth.[198]
The tourism industry is expanding, contributing some 3.02%
of total GDP.[201] Bangladesh's international tourism receipts in 2019 amounted
to $391 million.[202] The country has three UNESCO World Heritage Sites (the
Mosque City, the Buddhist Vihara and the Sundarbans) and seven tentative-list
sites.[203] The World Travel and Tourism Council (WTTC) reported in 2019 that
the travel and tourism industry in Bangladesh directly generated 1,180,500 jobs
in 2018 or 1.9% of the country's total employment.[204] According to the same
report, Bangladesh experiences around 125,000 international tourist arrivals
per year.[204] Domestic spending generated 97.7 percent of direct travel and
tourism gross domestic product (GDP) in 2012.[205]
Energy
Bangladesh, a country experiencing daily blackouts several
times a day in 2009, achieved 100% electrification by 2022.[206][207] It is
gradually transitioning to a green economy and has the largest off-grid solar
power programme in the world, benefiting 20 million people.[208] An electric
car called the Palki is being developed for production in the country.[209]
Biogas is being used to produce organic fertilizer.[210] The under-construction
Rooppur Nuclear Power Plant, under-construction with assistance from the
Russian company Rosatom, will be the first operational nuclear power plant in
the country. Its first unit, out of the two total units, is expected to go into
operation in 2025.[211]
Bangladesh continues to have huge untapped reserves of
natural gas, particularly in its maritime territory.[212][213] A lack of
exploration and decreasing proven reserves have forced Bangladesh to import LNG
from abroad.[214][215][216] Gas shortages were further exacerbated by the
Russian invasion of Ukraine.[217] Bangladesh stopped buying spot price LNG
temporarily in July 2022, despite constant load-shedding, due to a steep price
hike in the global market.[218] It restarted buying spot price LNG once again
in February 2023 as prices eased.[219]
While government-owned companies in Bangladesh generate
nearly half of Bangladesh's electricity, privately owned companies like the
Summit Group and Orion Group are playing an increasingly important role in both
generating electricity, and supplying machinery, reactors, and equipment.[220]
Bangladesh increased electricity production from 5 gigawatts in 2009 to 25.5
gigawatts in 2022. It plans to produce 50 gigawatts by 2041. U.S. companies
like Chevron and General Electric supply around 55% of Bangladesh's domestic
natural gas production and are among the largest investors in power projects.
80% of Bangladesh's installed gas-fired power generation capacity comes from
turbines manufactured in the United States.[221]
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