Bangladesh Economy 1997

Economy - overview Despite sustained domestic and international efforts to improve economicand demographic prospects, Bangladesh remains one of the world's poorest,most densely populated, and least developed nations. Annual GDP growth hasaveraged over 4% in recent years from a low base. Its economy is largely agricultural,with the cultivation of rice the single most important activity in the economy.Major impediments to growth include frequent cyclones and floods, the inefficiencyof state-owned enterprises, a rapidly growing labor force that cannot be absorbedby agriculture, delays in exploiting energy resources (natural gas), inadequatepower supplies, and slow implementation of economic reforms. Frequent strikesthat crippled the economy in 1995 and early 1996 subsided after Prime MinisterSheikh Hasina WAJED's Awami League government assumed power in mid-1996, allowinga return to normal economic activity. The current government has made someheadway improving the climate for foreign investors and liberalizing the capitalmarkets; for example, it has negotiated with foreign firms for oil and gasexploration, better countrywide distribution of cooking gas, and the constructionof natural gas pipelines and power plants. Progress on other economic reformshas been halting because of opposition from the bureaucracy, public sectorunions, and other vested interest groups.

GDP purchasing power parity - $155.1 billion (1996 est.)

GDP - real growth rate 4.7% (1996)

GDP - per capita purchasing power parity - $1,260 (1996 est.)

GDP - composition by sector
agriculture: 31%
industry: 18%
services: 51% (1995 est.)

Inflation rate - consumer price index 4% (FY95/96)

Labor force
total: 50.1 million
by occupation: agriculture 65%, services 21%, industry and mining 14% (1989)
note: extensive export of labor to Saudi Arabia, UAE, and Oman (1991)

Unemployment rate 35.9% (1996)

Budget
revenues : $4.1 billion
expenditures: $6 billion, including capital expenditures of $3 billion (FY95/96 est.)

Industries jute manufacturing, cotton textiles, food processing, steel, fertilizer

Industrial production growth rate 5.7% (1996 est.)

Electricity - capacity 2.98 million kW (1994)

Electricity - production 10.01 billion kWh (1994)

Electricity - consumption per capita 76 kWh (1995 est.)

Agriculture - products rice, jute, tea, wheat, sugarcane, potatoes; beef, milk, poultry

Exports
total value: $3.9 billion (FY95/96 est.)
commodities : garments, jute and jute goods, leather, frozen fish and seafood
partners: Western Europe 42%, US 30%, Hong Kong 4%, Japan 3% (FY95/96 est.)

Imports
total value: $6.8 billion (FY95/96 est.)
commodities: capital goods, textiles, food, petroleum products
partners: India 21%, China 10%, Western Europe 8%, Hong Kong 7%, Singapore 6%(FY95/96 est.)

Debt - external $17.1 billion (1996)

Economic aid
recipient : $1.585 billion (FY95/96)

Currency 1 taka (Tk) = 100 poiska

Exchange rates taka (Tk) per US$1 - 42.450 (January 1997), 41.794 (1996), 40.278 (1995),40.212 (1994), 39.567 (1993), 38.951 (1992)

Fiscal year 1 July - 30 June

NOTE: The information regarding Bangladesh on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Bangladesh Economy 1997 information contained here. All suggestions for corrections of any errors about Bangladesh Economy 1997 should be addressed to the CIA.