Gdp and Tex Relation in Bangladesh

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1. Trend of GDP:
Economic Factors Affecting the Fiscal Framework:
A Comparison between FY 2012-16 and FY 2013-17
| 2011-12| 2012-13| 2013-14| 2014-15| 2015-16| 2016- 17| Nominal GDP(Billion Taka)| | | | | | |
FY 12-16 MTMF| 8996.7| 10240.2| 11677.5| 13341.0| 15226.2| 17645.0| FY 13-17 MTMF| 9147.8| 10413.6| 11857.2| 13566.9| 15482.3| | Nominal GDP Growth (%)| | | | | | |

FY 12-16 MTMF| 14.2| 13.8| 14.0| 14.2| 14.1| |
FY 13-17 MTMF| 14.8| 13.8| 14.0| 14.2| 14.1| 14.0|
Real GDP Growth (%)| | | | | | |
FY 12-16 MTMF| 7.0| 7.2| 7.6| 8.0| 8.2| |
FY 13-17 MTMF| 6.3| 7.2| 7.6| 8.0| 8.3| 8.7|
Export Growth (%)| | | | | | |
FY 12-16 MTMF| 14.3| 14.5| 14.5| 15.0| 15.0| |
FY 13-17 MTMF| 14.5| 14.5| 14.5| 15.0| 15.0| 15.0|
Import Growth (%)| | | | | | |
FY 12-16 MTMF| 14.0| 14.0| 14.5| 14.5| 15.0| |
FY 13-17 MTMF| 15.0| 15.0| 15.0| 15.5| 15.5| 15.5|
Remittance Growth (%)| | | | | | |
FY 12-16 MTMF| 10.0| 12.0| 12.0| 12.0| 12.0| |
FY 13-17 MTMF| 11.0| 12.0| 12.0| 12.0| 12.5| 12.5|
GDP Deflator (% change)| | | | | | |
FY 12-16 MTMF| 6.8| 6.2| 6.0| 5.8| 5.5| |
FY 13-17 MTMF| 7.6| 6.3| 6.0| 5.8| 5.4| 4.9|

From the table it can be said, the GDP is increasing from year 2011-2016. As Bangladesh is a developing country, maintaining a positive growth in GDP is a big challenge. The major challenges are power and energy shortage, infrastructure bottlenecks, increases in fuel and non-fuel commodity prices in the international market, uncertainty in remittance growth, upward inflationary pressure, underutilization of the ADP, a downward trend in foreign aid utilization over the past few years, increased Bank borrowing by the government, increased pressure for subsidy, exchange rate instability and pressure on foreign exchange reserve. After overcoming these challenges Bangladesh will be successful to achieve the desired levels of economic growth in the medium term. 1.1 Power and Energy:

Practically more or less sectors, agriculture, industry, services, transportation and commercial enterprises are dependent on energy. As our government has decided to ensure adequate supplies of power and energy at reasonable prices, it will be critical in achieving medium and long-term GDP growth targets. The country has been constantly suffering from an acute power shortage since independence due to limited generation capacity that struggles to meet the ever increasing demand for power. Demand for and supplies of power never match with each other to give a comfortable and conducive condition for achieving the potential growth targets. Construction of new power plants and maintenance of old ones will require huge amounts of capital investment. But we don’t have our own money to construct new power plant. On the other hand rental power cost a lot. 1.1.1 Fuel Price:

Rising world fuel prices are also a concern both in the near and the medium term. The upward trend in oil prices is expected to continue for two reasons - the positive world GDP growth outlook indicating increased demand for fuel and the likely supply constraints due to political unrest in the Middle East and North African countries. World Energy Outlook 20101 described three distinct oil price scenarios including a price scenario linked to high world GDP growth. 1.2 Energy Sector:

The natural gas is not only the most vital raw material of power generation but also the major source of energy for commercial energy. Bangladesh has a good reserve of it which needs careful extraction and utilization. That’s why state owned company BAPEX using equipments and imparting improved training to the officials. National Coal Policy will also partially meet the demand for energy. Bangladesh government is doing survey in two deep sea blocks in order to explore gas and oil in the shallow...
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