Agricultur Industry Services Aid (%

GDP
Year e (% of (% of (% of of
Growth
GDP) GDP) GDP) GDP)
200
5.05 17.1 25.3 53.32 0.88
9
201
5.57 17 24.96 53.5 1.07
0
201
6.46 16.81 25.05 53.05 1.04
1
201
6.52 16.18 25.31 53.15 1.49
2
201
6.01 15.49 26.31 53.39 1.63
3

201
6.06 15.35 26.31 53.64 1.31
4
201
6.55 14.78 26.83 53.71 1.25
5
201
7.11 13.46 31.07 51.21 0.91
6
201
6.59 12.96 31.25 51.38 1.24
7
201
7.32 12.48 31.98 50.89 0.91
8

201
7.88 11.98 32.85 50.85 1.2
9
202
3.45 12 32.91 51.51 1.38
0
202
6.94 11.63 33.32 51.3 1.16
1
202
7.1 11.22 33.92 51.04 1.09
2
202
5.78 11 34.59 51.11
3

Externa
Year
l Debt
 (% of
GNI)
1991 41.11
1992 41.34
1993 41.46
1994 44.48
1995 40.25
1996 31.83
1997 28.74
1998 30.16
1999 31.13
2000 28.31
2001 26.93
2002 29.32
2003 29.46
2004 29.02
2005 25.51
2006 26.57
2007 25.41
2008 23.66
2009 22.95
2010 21.32
2011 19.48
2012 20.16
2013 20.03
2014 19.13
2015 18.63
2016 14.97
2017 16.8
2018 17.09
2019 17.09
2020 18.89
2021 20.88
2022 20.28

2009-2013:
Robust GDP Growth: Bangladesh experienced steady GDP growth during this period,
ranging from 5.0% to 6.5%. The resilience of its economy, despite global financial
instability, demonstrated its capacity to grow in challenging circumstances. However,
there is criticism regarding the authenticity of the data in recent times.

Agriculture’s Dominance in Rural Economy: The agricultural sector accounted for a

significant share of GDP, around 15-17%. However, its contribution declined gradually,
reflecting a structural shift toward industry and services.

Rising Industrialization: The share of industry in GDP hovered around 25-26%, driven
by the ready-made garments (RMG) sector, which fueled export growth and contributed
substantially to foreign exchange earnings.

Stable Services Sector: The services sector, at over 50% of GDP, played a crucial role
in sustaining the economy. It provided employment opportunities and supported
economic diversification.

Low Foreign Aid Dependency: Net ODA (% of GNI) remained modest, below 2%,
signaling a gradual shift toward self-reliance.

High External Debt: External debt stood at over 20% of GNI during much of this period,
creating fiscal pressure but remaining manageable.

The World Bank’s annual reports from 2013 emphasized Bangladesh’s progress in
poverty reduction and human development indicators, attributing these gains to
consistent economic growth and effective social programs.

Challenges:

Agricultural Productivity: Low productivity in agriculture limited income growth in rural

areas, exacerbating income inequality.

Infrastructure Deficiencies: Weak infrastructure, including energy shortages and

inadequate transport networks, hampered industrial expansion and export
competitiveness.

Political Instability: Frequent political unrest disrupted economic activities, affecting

investor confidence.

Limited Financial Inclusion: A lack of access to credit and formal banking services in
rural areas constrained entrepreneurship and economic participation.

High Debt Levels: Although sustainable, external debt levels restricted fiscal flexibility
and increased vulnerability to external shocks.

Navigating Global Turbulence

During this period, Bangladesh demonstrated resilience amidst the global financial
crisis. The World Bank’s September 2009 “Bangladesh Economic Update” highlighted
that the country’s low integration with the global economy cushioned it from adverse
effects, resulting in a slight dip in annual GDP growth to 5.9% in FY09.

2014-2018:
Characteristics:

Accelerated GDP Growth: Economic growth surged, crossing the 7% mark in 2016 and
maintaining strong momentum, driven by robust performance in the RMG sector and
rising domestic consumption. However, there is criticism regarding the authenticity of
the data in recent times.

Declining Agricultural Contribution: Agriculture’s share in GDP declined to below 13%,

reflecting ongoing structural transformation.

Industrial Expansion: The industrial sector expanded rapidly, reaching nearly 32% of
GDP by 2018, supported by increased investment and policy reforms aimed at boosting
manufacturing and construction.

Strengthened Services Sector: Services contributed around 50-53% of GDP, indicating

continued importance in job creation and economic stability.

Improved Debt Management: External debt levels fell significantly to below 19% of GNI
by 2018, indicating improved fiscal discipline.

Increased Remittances: Remittances remained a critical source of foreign exchange,

bolstering the current account and supporting rural households.

Challenges:

Urban-Rural Disparity: Economic growth was concentrated in urban areas, widening

disparities between urban and rural regions.

Environmental Concerns: Industrial growth led to environmental degradation, including

pollution and depletion of natural resources, particularly in the manufacturing hubs.

Limited Export Diversification: The economy remained heavily reliant on the RMG
sector, exposing it to external shocks and global market fluctuations.

Skills Gap: A lack of skilled labor hindered competitiveness in higher-value-added

industries.

Political Turbulence: Persistent political challenges, including strikes and protests,

disrupted economic activities.
World Bank observed that industrial production and services growth remained resilient,
but highlighted rising financial sector vulnerabilities and accelerating inflation due to
supply shocks.

2019-2023:
Characteristics:

Resilient Growth: Despite the COVID-19 pandemic and global economic uncertainties,
Bangladesh maintained a relatively strong growth trajectory, with GDP growth
recovering to 7.1% in 2022 after a pandemic-induced dip in 2020. However, there is
criticism regarding the authenticity of the data in recent times.

Strengthening Industrial Sector: Industry’s share in GDP continued to rise, reaching

over 34% by 2023. This growth was supported by infrastructure projects, foreign direct
investment (FDI), and government initiatives in manufacturing.

Stable Services Sector: Services remained the largest contributor to GDP, accounting
for over 50%, providing a buffer against external shocks and job losses during the
pandemic.

Declining Agriculture Share: Agriculture’s share declined further, falling to around 11%
by 2023, as structural shifts toward industry and services continued.

Rising Debt Levels: External debt levels rose above 20% of GNI in 2021 and 2022,
reflecting increased borrowing to finance large-scale infrastructure projects and
pandemic recovery measures.

The October 2023 “Bangladesh Development Update” highlighted progress in poverty

reduction, with poverty and extreme poverty rates falling by 1.3 and 0.8 percentage
points per year, respectively, between 2016 and 2022. The report attributed this
progress to economic growth and emphasized the need for continued reforms to
address emerging challenges.

Challenges:

COVID-19 Impact: The pandemic disrupted exports, remittances, and domestic

demand, causing a sharp economic slowdown in 2020. Recovery was uneven, with
some sectors lagging behind.
Rising Inflation and Fiscal Pressures: Global supply chain disruptions and rising energy
prices put upward pressure on inflation and increased fiscal burdens.

Climate Vulnerability: Bangladesh faced heightened risks from climate change, including
floods and cyclones, which affected agricultural output and displaced communities.

Export Dependency: Continued reliance on RMG exports and a lack of diversification

posed risks, particularly as global trade patterns shifted post-pandemic.

Infrastructure Gaps: Although improving, infrastructure remained inadequate to fully

support the country’s rapid industrialization and urbanization.

Conclusion: