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Bangladesh
Bangladesh has made important strides over the past decade. The average GDP growth of the Bangladesh
economy over the last six years was over 6%, increasing to an estimated 6.7% in FY2011. , aided by
conducive policies, strong export growth and favourable weather. GDP growth was broad-based with
agriculture, industry and service sectors performing well.
In FY2011, agricultural growth is estimated at 5.0%, as all major crops performed better than expected,
responding to favourable weather conditions. Continued policy support (including access to inputs at
subsidized prices), better forms of access to credit, and improved extension services have contributed to
these impressive growth rates. Services, which account for half of Bangladeshi GDP, grew by 6.6%,
marginally better than a year earlier. The trade, transport, and telecommunications subsectors continued to
perform well. Industry grew briskly by 8.2%, largely on the back of a strong recovery in garment exports.
Industries targeting the domestic market, as well as construction and housing activities, also contributed.
Investment rose marginally to 24.7% of GDP, from 24.4% the previous year.
External trade is currently dominated by exports and imports of manufactures in contrast to the situation
prevailing 30 years ago when jute and jute products were the principal export items. Exports remain
highly concentrated both in terms of products and destinations with readymade-garment (RMG) exports
to the EU and the U.S. the current mainstay. Even though its exports have increased significantly,
Bangladesh still suffers from a chronically weak foreign trade account because of its dependence on
imports of most essential goods, including fuel. Table 3.11 shows the composition of Bangladeshi exports
in 2008-2010. In global terms, Bangladesh's share of total world merchandise exports remains small at
around 0.1%, while its share of commercial services is only 0.02%. Overall, the country ranks 76th in
merchandise exports and 120th in commercial services exports among 180 countries.
Table 3.11: Export Performance of Various Products (US$ Million)
Jute Goods Leather Frozen Food Engineering Products Pharmaceuticals RMG
FY2008 318 284 534 220 43 10,700
FY2009 269 398 454 189 45 12,348
FY2010 540 226 445 311 41 12,497
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Source: Bangladesh Bank (Table 2.2 of Sixth Plan Accelerating Growth and Reducing Poverty Part-2
Sectoral Strategies, Programs and Polices).
Indonesia and Malaysia, as the bigger architects of the Asian growth miracle have more in common with
each other than their other OIC counterpart, Bangladesh. The abundance of exclusive commodities such
as palm oil continues to sustain their growth. However, unlike some of the MENA countries, both
Malaysia and Indonesia have sought economic diversification through high levels of investment in
technology and skills development coupled with increased FDI. This critical distinction has carved out
productive positions for them in the global economy. Bangladesh’s growth rates are impressive but there
is an overwhelming level of reliance on the RMG sector, where many of the SMEs are located. Climatic
conditions and underdeveloped institutions make the country and its SMEs vulnerable to small changes
which can have a dramatic effect.