The Contribution of Remittance In The GDP of Bangladesh

Bangladesh is a small agricultural country of South Asia with a total area of 144,000 sq km, still can’t get rid of the bad condition of being one of the developing countries, due to miserable poverty, huge corruption, high illiteracy rate, and a huge population of 144.43 million (2006)­­­­­­­­­­­­­­­­­­­­BBS.­­­­­­­ Moreover natural disasters such as seasonal flood, cyclones, draughts, sidar etc. constantly pursue its lot every year, which break the backbone of the economy and aggravate future planning. With high inflation, high price of daily goods and unemployment rate economy is totally disbursed.

If we look deeply to the GDP, which is the major indicator of an economy of a country, shows that for a long time, Bangladesh economy was backward. The years after independence, the total size of GDP, Per Capita GDP and the growth rates was small. The condition improved from the beginning of 1990. Yet, still the growth trend and the structural changes of GDP in Bangladesh are not satisfactory. Many problems are responsible for this unsatisfactory GDP. These are the shortage of domestic food production, narrow structure of exports, increasing growth rate of imports, failure in the invocation of much Foreign Direct Investment (FDI), a defective banking system with cumulative interest of loans, continuous loss in the public enterprises, poor infrastructure, inefficient taxation, high inflation rate, political instability and the serious deterioration of law and order situation. If these problems are solved, dynamic changes will come in the percentages of GDP.

A concise discussion of Bangladesh economic growth will help to understand about GDP of it. Economic growth of Bangladesh is compiled of three main sectors. These are:-

  • Agriculture.
  • Industry.
  • Service.

In recent times, Services is the largest sector in the percentage contribution to GDP. It includes all services activities. It consists of trade service, construction, transport, storage and communication, housing, public administration and defense, education, health, financial intermediates such as bank, insurance and other social and personal activities.