Economic Condition of Bangladesh
The consumer industry has grown considerably. The increasing foreign direct investment highlights the growth rate of the Bangladesh economy. Over time there has been structural transformation of the economy with a shift from predominantly agricultural led economy towards industry led economy, the contribution of agriculture sector to GAP was 38% in early ass’s but decline to 20% in 2009-2010, while the contribution of industrial sector increase from to 30% of GAP during the same period of time.
The growth of the economy in year 2009-2010 re mainly attributed by the high growth in industry, rapid growth in export and strong inward remittances, reforms in financial sector, sound monetary and fiscal policy and it was able to manage GAP 6. 07 from 5. 74 in the previous year. In the year 2011 the GAP of Bangladesh attained the highest GAP in Bangladesh history which was 6. 71 . According to the finance ministry it was possible for the proper monetary policy and also subject to favorable weather conditions for agriculture, robust growth in export and urgent sustainable increase in power and gas supplies.
In the other hand in 2012 the GAP decelerated into 6. 2 but still the economic condition seems in a better position due to the remittance inflows which were three and a half times higher than that of the previous four fiscal years. As of November 2012, 6. 11 billion US dollar had been received and in October 2012, the foreign exchange reserves surpassed the country’s history for the first time by crossing over 12 billion dollar reaching 12. 70 billion on December 23, 2012 recording an increase of more than 400 percent. The economic growth slowdown to 6. 1 per cent in the last fiscal from 6. 32 per cent of the 2011-12 fiscal, and was off-track compared to the ambitious target of 7. 2 per cent. This is because Bangladesh tends to experience significant violence during periods of political transition. The economic growth prospect remains circumscribed because of depressed private investment demand and the economic growth in current fiscal runs the risk of low delivery of public investment program. During PAYOFF it is estimated according to finance ministry that the GAP growth rate would be 7. Per cent but according to Nanny Nonesuch the GAP might face a decal of 5. 65 percent which will be the lowest GAP rate Bangladesh has faced in last 5 years. But it is predicted that there might be a change in the political situation ND the instability will be in control and government would be able to generate more revenue by collecting more TAX. In the area of macroeconomic management much attention will be attached to the conduct of private investment. There is a little indication that investment demand NAS picked up in the early months to FYI which will also help the GAP to grow.
But if N.B. negated to collect the projected amount of TAX it would not be possible to attain such goal and the economy would not grow as expected. Trend analysis of government revenues and expenditure: The gap between expenditure and revenue has been increasing on a year-to-year Asia because government expenditure has been increasing more rapidly than revenue. In FYI 2011-12, revenue collection was TX. 1148850 million, 20. 69 percent higher than that of the previous year whereas government expenditure at TX. 1612130 million was 17. 62 percent more than that of the previous year.