Question

1. what is Bangladesh level of gdp and the growth of gap for at least 10-15 years

2. what is Bangladesh savings ratio, investment and trade ratio.

Answer 1

Ans).1 .Bangladesh economy is the the developing economy as it is in the phase of transmission. The economy is the 39th big economy in the world in nominal terms. The current GDP of bangladesh $ 348 bn in the year 2020.Since the year 2004 bangladesh economy has growth at a rate of 6.5%.As there was a large exports of ready made garments and majorly agriculture activity also the credit is also given to the export promotional indutrialisation. Bangladesh historically has a larger trade deficit which is financed by remmittance and foreign aids. The growth of GDP can be broken into growth in labour force and  the growth in productivity of the labour force. Growth in labourforce is due to the immigration of workers and increase in the number of people looking for work. Labour productivity is a concept related to the efficiency of workforce , which is due to the human resource development.Labour productivity was below 4% in bangladest before 10-15 years and it has now reached 6%. It is a fact that in 75% of cases when labour productivity is more than 6 % than the GDP growth rate is 8 . Labour productivity is an important tool to analyse the GDP Gap with the developed economies.in 2001-2002 there was a drop in foreign direct investment.After the loan given by the World bank and IMF the economy of Bangladesh grow at a rate of 5 %. There was a decrease in foreign reserve in 2001 but after 2007 the reserve started to increase $ 3.74 billion. The reservese reach $30 billion in 2016.

Ans 2) Bangladesh saving ratio is 29.5%

Bangladesh investment ratio 31.6 % as of nominal GDP in june 2019 in both the above cases.

Bangladesh trade ratio was 38.4% to nominal GDP in the year 2018 with an increase of 2.94% from 2017.