Bangladesh is one of the fastest-growing economies in the world. Despite facing numerous challenges, the country has demonstrated remarkable resilience and achieved significant progress in recent years. Here are some of the latest developments in the Bangladesh economy.
GDP Growth:
Bangladesh’s economy has been growing rapidly over the past decade. In FY 2019, the country’s GDP growth rate was 8.2%, which was the highest in the Asia Pacific region. Although the COVID-19 pandemic caused some setbacks, the economy is expected to bounce back strongly in the coming years.
1. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has elected a new president, Faruque Hassan, for the term of 2021-2023.
2. The largest Bangladeshi conglomerate, Bashundhara Group, has signed an agreement with China’s Sinohydro Corporation Limited to construct a 1,320-megawatt coal-fired power plant in the country.
3. The Bangladesh Investment Development Authority (BIDA) has approved a $2.3 billion investment proposal by Reliance Bangladesh LNG & Power Ltd. to build a liquefied natural gas (LNG)-based power plant near the capital, Dhaka.
4. The government of Bangladesh has signed a memorandum of understanding (MoU) with the China Harbour Engineering Company (CHEC) to develop and operate a deep-sea port in Chittagong, the country’s largest seaport.
5. The Bangladesh Bank, the country’s central bank, has recently announced a new policy to provide low-interest loans to small and medium enterprises (SMEs) affected by the Covid-19 pandemic. The move is aimed at supporting and revitalizing the country’s struggling SME sector.
RMG Industry:
The Ready-Made Garment (RMG) sector is the backbone of Bangladesh’s economy, accounting for 84% of exports. The RMG industry has been performing well despite the pandemic. In FY 2020, the sector earned $28.14 billion in export revenue, a 14.7% increase compared to the previous year.
Digital Economy:
Bangladesh is witnessing a rapid expansion of the digital economy. The country has over 100 million internet users, and the number is growing every day. The government has launched several initiatives to promote digitalization, such as the “Digital Bangladesh” campaign. The e-commerce sector is also booming, with sales expected to reach $4 billion by 2025.
Infrastructure Development:
Bangladesh is investing heavily in infrastructure development to support economic growth. The country has completed several mega-projects, such as Padma Bridge, the Rooppur Nuclear Power Plant, and the Dhaka Metro Rail. Additionally, the government has allocated significant funds for upgrading roads, highways, airports, and seaports.
Foreign Investment:
Bangladesh is becoming an attractive destination for foreign investors due to its strategic location, large population, and competitive labor costs. The government has taken various measures to attract foreign investment, such as offering tax breaks, simplifying procedures, and establishing special economic zones. In FY 2020, foreign direct investment in Bangladesh reached $2.6 billion, a 67.9% increase from the previous year.
Conclusion:
The Bangladesh economy is on a steady upward trajectory, despite the challenges posed by the pandemic. The highlights mentioned above show that the country has made remarkable achievements in various sectors. However, there is still a long way to go to reach the desired level of development. With continued efforts and investments, Bangladesh can sustain its growth momentum and become a developed nation in the near future.