Economy of Bangladesh

Economy of Bangladesh

Motijheel C/A, the downtown of Dhaka
Currency	Bangladeshi taka (BDT, ৳)
Fiscal year	1 July – 30 June
Trade organizations	SAFTA, SAARC, BIMSTEC, WTO, AIIB, IMF, Commonwealth of Nations, World Bank, ADB, Developing-8
Country group	Developing/Emerging Lower-middle income economy
Statistics
Population	169,800,000 (2022)
GDP	$481 billion (nominal; 2025) $1.8 trillion (PPP; 2025)
GDP rank	35th (nominal; 2024) 24th (PPP; 2024)
GDP growth	5.82% (2023) 4.22% (2024f) 5% (2025f)
GDP per capita	$2,770 (nominal, 2025) $10,370 (PPP, 2025)
GDP per capita rank	139th (nominal, 2024) 126th (PPP, 2024)
GDP by sector	Agriculture: 12.91% Industry: 33.90% Services: 53.40% (FY2020)
Inflation (CPI)	9.94% (January 2025)
Population below poverty line	18.7% (2024) 5.6% living in extreme poverty (2024) 6.5% (rural) ; 3.8% (urban)
Gini coefficient	31.8 medium (2022)
Human Development Index	0.670 medium (2024) (129th)
Labor force	74,913,612 (2024) Female 32.4% Template:Same 56% employment rate (2023)
Labor force by occupation	Agriculture: 40.6% Industry: 20.4% Services: 39.6% (2017 est.)
Unemployment	3.53% (2024)
Average gross salary	৳26867 ({{BDTConvert/|26867|0||USD|year={{{year}}}}}) per month (2023)
Average net salary	৳26867 ({{BDTConvert/|26867|0||USD|year={{{year}}}}}) per month (2023)
Main industries	Textiles Pharmaceutical Products Electronics Shipbuilding Automotive Bicycle Leather Jute Glass Paper Plastic Food and Beverages Cement Tea Rice Natural Gas and Crude Petroleum Iron and Steel Ship breaking
Ease-of-doing-business rank	168th (below average, 2020)
External
Exports	$60.5 billion (2024)
Export goods	Cotton textiles and knitwear, jute and jute goods, fish and seafood, leather and leather goods, home textiles, pharmaceuticals, processed food, plastics, bicycles
Main export partners	Germany(+) 16% United States(+) 15.2% United Kingdom(+) 7.41% Spain(+) 7.17% Poland(+) 5.552% France(+) 4.2% Netherlands(+) 3.55% Italy(+) 3.36% (2020) Others 37.558%
Imports	$70.1 billion (2024)
Import goods	Liquified natural gas, crude oil and petroleum, machinery and equipment, chemicals, cotton, foodstuffs
Main import partners	China(+) 21.5% India(+) 12.2% Singapore(+) 9.2% European Union(+) 6.2% Hong Kong(+) 5.5% Other 45.3%
FDI stock	$22.08 billion (March 2022) Abroad: $309.6 million (31 December 2017 est.)
Current account	−$18.697 billion -4.2% of GDP (F.Y. 2021-22)
Gross external debt	$110 billion (F.Y. 2024)
Public finances
Public debt	Template:Increasenegative 40.7% of GDP (November 2021)
Budget balance	−3.2% of GDP (2017 est.)
Revenues	৳433000 crore ({{BDTConvert/|433000|7||USD|year={{{year}}}}}) (2022-2023)
Expenses	৳678064 crore ({{BDTConvert/|678064|7||USD|year={{{year}}}}}) (2022-2023)
Credit rating	Standard & Poor's: B+ (Domestic) B+ (Foreign) B+ (T&C Assessment) Outlook: Stable Moody's: B2 Outlook: Negative Fitch: B+ Outlook: Stable
Foreign reserves	$24.55 billion (Gross) $19.84 billion (BPM6) (October 2024)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of Bangladesh is classified as a major developing mixed economy. It ranks as the second-largest economy in Indian subcontinent and holds the position of the 35th largest economy globally in nominal terms, while being the 25th largest when measured by purchasing power parity. Various financial institutions recognize Bangladesh as one of the Next Eleven economies, reflecting its potential for growth. The country is transitioning from a frontier market to an emerging market status. Bangladesh is a member of the South Asian Free Trade Area (SAFTA) and the World Trade Organization (WTO). In the fiscal year 2021–2022, Bangladesh achieved a GDP growth rate of 7.2% following the global pandemic, positioning it among the fastest-growing economies in the world.

The industrialisation of Bangladesh gained significant momentum following the partition of India, facilitated by labor reforms and the establishment of new industries. From 1947 to 1971, East Pakistan was responsible for generating between 50% and 70% of Pakistan's total exports. In the late 1970s, modern Bangladesh initiated economic reforms that encouraged free-market practices and attracted foreign direct investment. By the 1990s, the ready-made garments sector experienced substantial growth. As of 16 March 2024, Bangladesh boasts the highest number of green garment factories worldwide, all certified under Leadership in Energy and Environmental Design (LEED) by the United States Green Building Council (USGBC). Among these, 80 factories hold platinum ratings, 119 are gold-rated, 10 are silver-rated, while four do not have any rating. Additionally, as of 06 March 2024, Bangladesh is home to 54 of the top 100 LEED-certified Green Garment Factories globally, including 9 of the top 10 and 18 of the top 20. Furthermore, as of 27 April 2024, the pharmaceutical industry in Bangladesh is on an upward trajectory, recording an average annual growth rate of 12%. Notably, Bangladesh stands out as the only country among the 48 least-developed nations that is nearly self-sufficient in medicine production, with local manufacturers satisfying 98% of domestic pharmaceutical needs.

Remittances from the substantial Bangladeshi diaspora have emerged as a crucial source of foreign exchange reserves. The agricultural sector in Bangladesh benefits from government subsidies, which help ensure food self-sufficiency. Overall, the country has adopted a strategy of export-oriented industrialisation.

Following the pandemic, Bangladesh witnessed strong economic growth characterised by macroeconomic stability, enhanced infrastructure, an expanding digital economy, and increasing trade flows. However, tax collection remains notably low, with tax revenues constituting only 7.7% of the country's GDP. The banking sector is facing significant challenges due to a high volume of non-performing loans, raising considerable concern among stakeholders.

The private sector plays a crucial role in the economy, accounting for approximately 80% of GDP. The country features two primary stock exchanges: the Dhaka Stock Exchange and the Chittagong Stock Exchange. Additionally, the majority of businesses in Bangladesh are privately owned small and medium-sized enterprises (SMEs), which represent about 90% of all enterprises operating within the nation.