The economy of Bangladesh is rapidly developing market-based economy. According to the International Monetary Fund, Bangladesh ranked as the 43rd largest economy in the world in 2010 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leather goods, ceramics, ready-made goods. Remittances from Bangladeshis working overseas, mainly in the Middle East, are the major source of foreign exchange earnings; exports of garments and textiles are the other main sources of foreign exchange earnings. Ship building and cane cultivation have become a major force of growth. GDP's rapid growth due to sound financial control and regulations has also contributed to its growth; however, foreign direct investment is yet to rise significantly. Bangladesh has made major strides in its human development index.
Bangladesh is a developing country. Macro aggregate factors shape the country’s overall economy. In order to find out any country’s economic condition real growth in GDP, Rate of inflation, GDP deflator, Economic participation rate etc are crucial macro aggregate factors. Among the five major macroeconomic indicators – GDP Growth, Inflation, Remittance, Export and Import, four indicators have been analyzed to understand the economic condition of Bangladesh. For simplicity, and limitation of data availability and to keep the report within the course constraint, this report focused on Inflation, Remittance, Total export, and Total import of Bangladesh for the last five months (July- November 2012) compared with the same period of previous year. HIGHLIGHTS OF THE FINDINGS
* Remittances receipts: in July-October 2012 increased by 24.92 percent to USD5012.32 million compared to the growth of 11.99 percent during the same period of 2011. In October 2012, remittances was USD1.45 billion, recorded an increase of 39.84 percent over October 2011.
* Inflation declined for the fourth consecutive month in October 2012. October inflation rate stood at 7.22 percent, a drop by 0.17 percentage point from September 2012 according to the old base year: 1995-96=100. Food inflation in October was 5.57 percent, down from 6.16 percent recorded in September. Non-food inflation, however, after dropping to single digit in August and September, started to creep up in September to cross double digit (10.46 percent) in October, which is linked to spiraling electricity prices and house rents.
* Import payments Import payments during July-September 2012 stand lower by 5.21 percent to USD8332.30 million against the amount of the same period of the previous fiscal.
* Exports receipts Exports improved in the July-October 2012 by 3.08 percent from JulyOctober 2011 though weak demand in Bangladesh’s major export markets. Few of the export items registered positive growth in July-September 2012 with some high value items including woven garments and Jute goods. Knitwear, frozen food, and leather experienced negative growth in the same period. ANALYSIS
* Remittance Inflow
A remittance is a transfer of money by a foreign worker to his or her home country. Money sent home by migrants constitutes the second largest financial inflow to many developing countries, exceeding international aid. Estimates of remittances to developing countries vary from International Fund for Agricultural Development's US$301 billion (including informal flows) to the World Bank's US$250 billion for 2006 (excluding informal flows). Remittances contribute to economic growth and to the livelihoods of people worldwide. Moreover, remittance transfers can also promote access to financial services for the sender and...