Essay regarding The Macro-economic Performance of Bangladesh 2008-2013


In real term Bangladesh's economy is continuing to grow 5. 8% per year since 1996, despite politics instability, poor infrastructure, corruption, insufficient electricity supplies, and slow rendering of economical reforms. Bangladesh remains an unhealthy, overpopulated, and inefficiently ruled nation. Though more than half of GDP is generated through the service sector, 45% of Bangladeshis are employed in the farming sector with rice because the single-most-important product. Bangladesh's growth was resilient throughout the 2008-2009 global financial crisis and downturn. Garment export, totaling $12. 3 billion dollars in the financial year 2009 and remittance from Bangladeshis, totaling $11 billion in fiscal yr 2010, made up almost 12% of GROSS DOMESTIC PRODUCT.

The macroeconomic developments in Bangladesh because the beginning of the nineties, until core decade, were characterized by a record-low price of pumpiing, an unprecedented build-up of external reserves and an increased resource placement of the federal government. These innovations have been viewed in part since evidence of powerful macroeconomic stabilization, but as well in part since symptoms of financial stagnation. All of the changes in the macroeconomic trends inside the early nineties came in the wake of any transition to a democratic rule combined with launching of the comprehensive programme of market-oriented liberalizing policy reforms. After that period there was a evident in a build-up of inflationary pressures, a deterioration inside the government's financial balances and a rapid draw-down on foreign exchange reserves.

Financial reform is stalled in many instances by political infighting and corruption whatsoever levels of govt. Progress also has been blocked by simply opposition in the bureaucracy, community sector unions, and other vested interest groups.

A key part of the economic environment is the strength of theВ macro-economy. Macroeconomics is mainly focused on: Levels of career and unemployment

The total expenditure made by businesses and govt

The general degree of prices

The rate of interest and exchange rates

The strength of the economy is always changing, although extensive movements take the time to occur.  The level of activity in an overall economy can be tested in several techniques, but the most common way should be to look at the benefit of gross household product (shortened to " GDP”) (the key measure of economic activity) in each period. GDP is commonly used to measure economic growth and is made up of a lot of parts: The formula to get is:  GDP = C + I actually + G + (X − M)


C (Consumption)

My spouse and i (Investment)

G (Government spending) and

Times в€’ Meters (Net Exports)

FIGURE 1 ) 1 Financial Flows and the Circular Flow of Expenses and Income [Source: MACROECONOMICS, tenth Edition - MICHAEL PARKIN]

Households use their very own income to get consumption expenditure (C), conserving (S), and net taxes (T). Businesses borrow to finance their very own investment costs. Governments acquire to financial a budget shortage or pay back debt in the event that they have a budget surplus. The rest of the world borrows to finance their deficit or perhaps lends the surplus.

Monetary growth is an increase in the value of goods and services created by an overall economy over time. You will discover two main ways to assess economic growth:

Actual progress (GDP)

Potential growth (trend growth)

The proportion annual increase in a country's real major domestic product over a period of period The long run expansion of an economy's productive potential The % annual increase in national result

The increase in the capacity with the economy to create

Caused by an increase in aggregate demand

Caused by a rise in aggregate source

Potential result is that which may be produced if there is full job of resources

Table: 1 Actual & Potential Expansion

Economic growth is a vitally important measure for many reasons: Economic growth is approximately an increase in development within the economic system It is important mainly because ourВ living standardsВ are influenced simply by our access to goods and...

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Dhaka: Bangladesh Bank.

Bangladesh Bureau of Statistics. (2012). Summary Survey of the Household Expenditure Review

August 2012, Dhaka: Government of Bangladesh.

Bangladesh Bureau of Statistics. (2000). 2000 Record Year Book of Bangladesh, Dhaka:

Government of Bangladesh.

Bangladesh Bureau of Statistics. (2008). Report in the Household Income & Spending Survey

March 08, Dhaka: Government of Bangladesh.

Bhattacharaya, M. (2013). Bangladesh Economy in FY2013: Macroeconomic Performance.

In Centre for Coverage Dialogue

Center for Coverage Dialogue (CPD) & Self-employed Review of Bangladesh's Development (IRBD).


The Middle for Coverage Dialogue (CPD). (2013). Analytical Review of Bangladesh's Macroeconomic

Performance in FY2012-13 (First Reading) Apr 2013

Bangladesh Economy Account. (2013) –