Economic Condition of Bangladesh (1959-2010)

Economic Condition of Bangladesh (1959-2010)

1.0 Introduction:

Bangladesh is a densely populated country as well as a developing country with rising economy it’s facing lots of constraints because of high population, high poverty, high unemployment rate, natural disaster, political fluidity etc. From its liberalization because of political instability and as an after war effect Bangladesh was going through a slow economic growth in the periods of 1970’s and 1980’s (Khan, 2014). Although it has lots of constrains from 1990 to till the present it has achieved sustained economic growth. According to of market-based economy, in nominal terms Bangladesh is the 41th largest in the world and 29th largest by purchasing power parity. In 2016 Bangladesh's economy became the second fastest growing major economy with a rate of 7.1% (Dhaka Tribune, 1 November 2014). One of the largest major sector of the economy of Bangladesh is agricultural sector and almost 15.5% of the GDP comes from this sector. Export also play a vital role in Bangladeshi economy, readymade garments is at the top of the list and among the most exportable item and holding that position for several years.

Based on the analysis of the twenty first century, the economy faces economic instability for several times. There are a several reasons behind such fluctuations such as rise in oil price, reduction in foreign investment, supply of local labor, political situation etc. But taking significant decisions to tighten the private sector helped the economy to kick back which was required to ensure the growth in future of the economy.

1.1 Objective of the Study:

¬ The main objective is to know the overall economic conditions of Bangladesh during 1959-2010.

¬ To analyze the factors that have impact on the consumption, investment, government expenditure, international trade and ultimately the real GDP.

¬ To find out the relationship between business cycle with other cyclical independent components and the economic growth and economic growth rate of independent variables.

1.2 Methodology of the Study:

This report is mainly based on secondary data. Different information was taken and to complete the report data sources are to be identified and collected, they are to be analyzed and interpreted in a systematic way.

1.3 Limitation of the study:

¬ Lack of time constrains was the most important limitations in preparation of the report.

¬ Lack of expertise and documents.

¬ Because of inadequate access to information it was little difficult to get the actual information.

2.0 Analysis